HB4599 102ND GENERAL ASSEMBLY

LRB102 22177 KTG 31306 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4599

Introduced 1/21/2022, by Rep. Edgar Gonzalez, Jr.

SYNOPSIS AS INTRODUCED:

New Act

Creates the Freedom to Subscribe Directly Act. Provides that a provider of a digital application distribution platform for which cumulative downloads of software applications from the digital application distribution platform to Illinois users exceed 1,000,000 downloads in the previous or current calendar year may not: (i) require a software application developer that is domiciled in the State to use a particular in-application payment system as the exclusive mode of accepting payments from a user for software application downloads or digital purchases; (ii) require use of a particular in-application payment system for accepting payments from Illinois users to download a software application or purchase a digital or physical copy; or (iii) retaliate against a developer that is domiciled in the State or an Illinois user for using an in-application payment system or digital application distribution platform that is not owned by, operated by, or affiliated with the provider. Exempts special-purpose digital application distribution platforms from the Act. Provides that the Attorney General may receive complaints and investigate violations of the Act. Provides that any person aggrieved by a violation of the Act may commence a civil action. Defines terms.

A BILL FOR

AN ACT concerning digital application distribution platforms.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Freedom to Subscribe Directly Act.

Section 5. Definitions. As used in this Act:

"Illinois user" means a user whose most recent address shown in the records of a provider is located within this State.

"Developer" means a creator of software applications that are made available for download by users through a digital application distribution platform or other digital distribution platform.

"Digital application distribution platform" means a digital distribution platform for applications and services that are provided to users on general-purpose hardware, including mobile phones, smartphones, tablets, personal computers, and other general-purpose devices that are connected to the Internet. "Digital application distribution platform" includes a digital distribution platform that is provided or used for only certain types of devices, such as certain grades of computing device, devices that are made by only a particular manufacturer, or devices that run a particular operating system.

"Domiciled in this State" means a person that conducts in this State the substantial portion of work to create or to maintain digital applications.

"In-application payment system" means an application, service, or user interface that is used to process payments from users to developers for software applications and digital and physical products and services distributed through software applications.

"Provider" means a person that owns, operates, implements, or maintains a digital application distribution platform or an in-application payment system.

"Special-purpose digital application distribution platform" means a digital distribution platform established primarily for use by public safety agencies or for single or specialized categories of applications, software, and services that are provided to users on hardware intended primarily for specific purposes, including gaming consoles, music players, and other special-purpose devices that are connected to the Internet.

Section 10. Digital application distribution platforms; prohibitions.

(a) A provider of a digital application distribution platform for which cumulative downloads of software applications from the digital application distribution platform to Illinois users exceed 1,000,000 downloads in the previous or current calendar year may not do any of the following:

(1) Require a developer that is domiciled in this State to use a particular in-application payment system as the exclusive mode of accepting payments from a user to download a software application or purchase a digital or physical product or service through a software application.

(2) Require use of a particular in-application payment system for accepting payments from Illinois users to download a software application or purchase a digital or physical copy.

(3) Retaliate against a developer that is domiciled in this State or an Illinois user for using an in-application payment system or digital application distribution platform that is not owned by, operated by, or affiliated with the provider or retaliate against a developer for that use to distribute applications to or accept payments from Illinois users. Such prohibited acts of retaliation shall include, but not be limited to, demoting the search rankings of the developer or slowing down the application review and approval timelines.

(b) This Act does not apply with respect to special-purpose digital application distribution platforms.

(c) The Attorney General may receive complaints and investigate violations of this Act and may bring an action in any court of competent jurisdiction to obtain legal or equitable relief on behalf of a person aggrieved by the violation.

(d) Any person aggrieved by a violation of this Act may commence a civil action on the person's own behalf in any court of competent jurisdiction to obtain legal or equitable relief, including reasonable attorney fees and costs.

(e) An action may not be commenced under subsection (d) until 60 days after the plaintiff has given notice of the alleged violation to the Attorney General. An action may not be commenced under subsection (d) if the Attorney General has commenced and is diligently prosecuting an action in court arising from the same alleged violation.