The North Dakota bill that an Apple executive warned “threatens to destroy the iPhone as you know” died in a vote on Tuesday.
Three-quarters of North Dakota’s 48 state senators voted against the bill, which sought to force Apple and Google to hand over a portion of their app sales to North Dakota companies.
The bill targeted Apple and Google’s practices of charging up to 30 percent commission on many app sales. According to estimates by app data firm Sensor Tower, a combined $ 33 billion in companies were brought from those commissions last year.
Companies such as Epic Games, Spotify and Match Group, along with some smaller app developers, have opposed commissions as artificially high, arguing that Apple and Google can only charge them because they are monopolies and apps. Manufacturers have very few options to deal with. To reach them customers. Two tech giants make software that outlines almost all smartphones in the world.
Bill lobbied intensely on both sides. Apple specifically feared that it would set a dangerous precedent for its business, helping app developers avoid significant fees for the recent increase. Apple and its advocates warned that the bill could put North Dakota at risk of costly lawsuits.
Republican state senator Jerry Klein said on Tuesday that we do not want to put the state in a position where we need to spend our taxpayer dollars in litigation, because these are some very large companies. Dakota Senate. “Let’s stay out of the courts.”
After the vote, Republican state senator Kyle Davison, who introduced the bill, accused the complexity of the issue and Apple’s opposition of its failure. “When banging heads with Apple, you need to be able to match their intensity with resources including lobbyists,” he said.
Critics and rivals of Apple and Google have now turned their attention to other states. Arizona, Georgia, and Massachusetts are considering similar legislation, and lobbyists are pushing for nearly identical bills in Minnesota and Wisconsin. The Alliance for App Fairness, a group of companies opposing app-store commissions, including Epic and Spotify, is leading the push for the bill.
Apple declined to comment, and Google did not immediately respond to a request for comment.