App Store Freedom Act: Get Ready for Sideloading and Payment Options as Bill Targets Big Tech App Stores

The "App Store Freedom Act" is looking to rewrite the rules for how you get apps on your phone and how app developers do business. If you've ever felt locked into your phone's default app store or wondered why some apps make you pay through a specific system, this bill is aimed at companies like Apple and Google that run massive app stores (we're talking over 100 million U.S. users for the app store and the operating system it uses, as defined in Section 6) and the operating systems they sit on. The main goals, outlined in Section 2? To force these "covered companies" to allow things like installing apps from other websites (often called "sideloading"), let you pick different app stores as your default, and stop them from making developers use only their proprietary in-app payment systems. Essentially, it's about injecting more competition into the app world.

Your Phone, More Choices (With a Catch)

So, what could this actually mean for your daily phone use? Section 2(a) of the bill lays out some significant changes. First, you might be able to download apps from sources other than the official app store – a practice known as sideloading. Think downloading an app directly from a developer's website. You could also potentially choose a third-party app store as your main go-to and even hide or delete some of those pre-installed apps that came with your phone. This could open up a wider variety of apps and maybe even some that aren't allowed on the big platforms currently.

However, there's a flip side. Section 5 clarifies that these big tech companies wouldn't be required to offer warranty service for damage caused by apps you install from outside their official stores, nor would they have to provide customer service for these third-party apps. So, more freedom, but potentially more responsibility on your end to vet what you're installing.

A New Deal for App Developers?

This bill could also be a big deal for the folks who actually make the apps. Section 2(b) prohibits covered companies from forcing developers to use their specific in-app payment system. This is a hot topic, as those systems often come with a commission (sometimes up to 30%) on sales. Developers might also get more freedom to set different prices on different platforms without facing penalties. Plus, the bill aims to stop platform owners from blocking developers from communicating directly with their users about legitimate business offers, like a discount if you subscribe on their website.

Furthermore, Section 2(b)(3) tries to prevent these tech giants from using nonpublic business information they gather from apps on their platform to then build competing apps. For smaller developers, this could feel like a shield against having their ideas swiped after doing all the hard work. On the access front, Section 2(a)(2) mandates that developers get "timely and cost-free access" to operating system interfaces and features on "equivalent terms" to what the platform owner and its partners get. What "equivalent terms" means in the real world, though, could be a source of debate and depends on how it's interpreted and enforced.

The Ground Rules: Enforcement, Exceptions, and Timeline

Who's going to make sure these rules are followed? The Federal Trade Commission (FTC) is tasked with enforcement, as detailed in Section 3, and can levy civil penalties up to $1,000,000 per violation, on top of any other penalties under the FTC Act. State attorneys general can also bring civil actions. While this federal act would generally take precedence, Section 4 clarifies it doesn't override state laws on things like contracts, fraud, or data breaches.

It's also important to note what the bill doesn't do. According to Section 5, companies can still protect their intellectual property (like copyrights and trademarks). They also aren't required to license their intellectual property or share data with entities on government sanction lists or those identified as national security risks, including specific foreign adversary controlled applications. The bill also states it doesn't limit any existing Federal or State antitrust laws. As for when all this might happen, Section 7 directs the FTC to issue guidance within 180 days of the bill's enactment, and the Act would take effect once that guidance is out.