HB3098 103RD GENERAL ASSEMBLY

LRB103 05162 SPS 50177 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3098

Introduced 2/17/2023, by Rep. Abdelnasser Rashid

SYNOPSIS AS INTRODUCED:

New Act

Creates the Protect Illinois Technology Jobs 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 a mode of accepting payments from a user for software application downloads or digital purchases; (ii) require use of a particular in-application payment system as a mode of accepting payments from Illinois users to download a software application or purchase a digital or physical product or service through a software application; (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; or (iv) discriminate against any developer on account of the developer using a third-party payment system to process payments for in-application payments. 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. Provides that nothing in the Act shall restrict the ability of a digital application distribution platform to determine the manner in which applications may be downloaded, and specifically, nothing in the Act shall prohibit the ability of a digital application distribution platform to prohibit side-loading of applications. 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 Protect Illinois Technology Jobs Act.

Section 5. Definitions. As used in this Act:

"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.

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

"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 a 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 as a mode of accepting payments from Illinois users to download a software application or purchase a digital or physical product or service through a software application.

(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 to download a software application or purchase a digital or physical product or service through a software application. Such prohibited acts of retaliation shall include, but not be limited to, demoting the search rankings of the developer, removing the application from the distribution platform, or slowing down the application review and approval timelines.

(4) Discriminate against any developer on account of the developer using a third-party payment system to process payments for in-application payments. Such prohibited discrimination shall include, but not be limited to, charging higher take rates or commissions for application distribution or any other service provided by the digital application distribution platform than the platform charges to applications that either offer no in-application payment systems or use an in-application payment system controlled or approved by the platform.

(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's fees and costs.

(e) An action may not be commenced under subsection (d) until 60 days after the person allegedly aggrieved by a violation of this Act 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.

(f) Nothing in this Act shall restrict the ability of a digital application distribution platform to determine the manner in which applications may be downloaded, and specifically, nothing in this Act shall prohibit the ability of a digital application distribution platform to prohibit side-loading of applications.