119-hr3209

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3209 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3209

 To prohibit unfair or deceptive acts or practices in the app 
 marketplace, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 6, 2025

 Mrs. Cammack introduced the following bill; which was referred to the 
 Committee on Energy and Commerce

_______________________________________________________________________

 A BILL

 To prohibit unfair or deceptive acts or practices in the app 
 marketplace, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``App Store Freedom Act''.

SEC. 2. PROTECTING A COMPETITIVE APP MARKET.

    (a) Requirements.--

    (1) Interoperability.--A covered company that owns or 
 controls the operating system on which an app store owned or 
 controlled by the covered company operates shall allow and 
 provide readily accessible means for a user of such operating 
 system to--
        (A) choose a third-party app or app store as a 
 default;
        (B) install a third-party app or app store through 
 means other than the app store owned or controlled by 
 the covered company; and
            (C) hide or delete an app or app store provided or 
 pre-installed by the covered company (or any business 
 partner of the covered company).

    (2) Open app development.--A covered company, in a timely 
 manner, without cost, and on terms that are equivalent to the 
 terms of access by the covered company or any business partner 
 of the covered company, shall provide to a developer of an app 
 accessible on an operating system, or distributed through an 
 app store, owned or controlled by the covered company--
        (A) access to any interface and hardware and 
 software feature of the operating system that are 
 generally available to the covered company and any 
 business partner of the covered company; and
        (B) documentation and development information 
 sufficient to access any such interface and feature.

    (3) Compliance.--A covered company shall be in compliance 
 with the requirements described under paragraph

    (2) if that 
 company--
        (A) licenses any intellectual property that the 
 developer of an app needs to access any interface or 
 hardware or software feature of such operating system; 
 or
        (B) limits the interfaces and hardware and software 
 features of the operating system generally available to 
 the covered company and any businesses partner of the 
 company to interfaces and hardware and software 
 features that do not implicate such intellectual 
 property rights.

    (b) Prohibitions.--

    (1) Exclusivity and tying.--A covered company may not--
        (A) require, as a condition for an app to be 
 accessible on an operating system or distributed 
 through an app store that is owned or controlled by the 
 covered company, that--
            (i) a developer of the app use or enable an 
 in-app payment system owned or controlled by 
 the covered company or any business partner of 
 the covered company; or
            (ii) pricing or other terms of sale be 
 equal to or more favorable on such operating 
 system or app store than on another operating 
 system or app store; or
        (B) take punitive action or otherwise impose less 
 favorable terms and conditions against a developer of 
 an app distributed outside of an app store that is 
 owned or controlled by the covered company--
            (i) for using or offering different pricing 
 or other terms of sale on an app store or 
 through an in-app payment system that is not 
 owned or controlled by the covered company; or
            (ii) on the basis that such app provides 
 access to a third-party app that is not owned 
 or controlled by the covered company through 
 remote electronic services rather than through 
 download from an operating system or an app 
 store that is owned or controlled by the 
 covered company.

    (2) Interference with legitimate business communications.--
        (A) In general.--A covered company may not impose 
 any restriction or fee on the communication of a 
 developer of an app accessible on an operating system 
 or distributed through an app store that is owned or 
 controlled by the covered company with a user of the 
 app, whether through such app or direct outreach to 
 such user, concerning legitimate business offers, 
 including pricing or other terms of sale and product or 
 service offerings.
        (B) Rule of construction.--Nothing in this 
 paragraph may be construed to prohibit a covered 
 company from requiring that consent of a user be 
 obtained prior to collecting and sharing data of the 
 user through an app accessible on an operating system 
 or distributed through an app store that is owned or 
 controlled by the covered company if the apps and 
 services of the company are subject to the same 
 consent.

    (3) Nonpublic business information.--A covered company may 
 not use nonpublic business information derived from an app 
 accessible on an operating system or distributed through an app 
 store that is owned or controlled by the covered company for 
 the purpose of competing with such app.

SEC. 3. ENFORCEMENT.

    (a) Enforcement by Federal Trade Commission.--

    (1) Unfair or deceptive acts or practices.--A violation of 
 this Act shall be treated as a violation of a regulation under 
 

section 18

    (a)

    (1)
        (B) of the Federal Trade Commission Act (15 
 U.S.C. 57a

    (a)

    (1)
        (B) ) regarding unfair or deceptive acts or 
 practices.

    (2) Powers of commission.--Except as provided in paragraph

    (3) --
        (A) the Commission shall enforce this Act in the 
 same manner, by the same means, and with the same 
 jurisdiction, powers, and duties as though all 
 applicable terms and provisions of the Federal Trade 
 Commission Act (15 U.S.C. 41 et seq.) were incorporated 
 into and made a part of this Act; and
        (B) any covered company who violates this Act shall 
 be subject to the penalties and entitled to the 
 privileges and immunities provided in the Federal Trade 
 Commission Act.

    (3) Penalties.--
        (A) Additional civil penalty.--In addition to any 
 penalty applicable under the Federal Trade Commission 
 Act, any covered company who violates this Act shall be 
 liable for a civil penalty of not more than $1,000,000 
 for each violation.
        (B) Method.--Any civil penalty described in 
 subparagraph
        (A) shall be obtained in the same manner 
 as a civil penalty for a violation of a regulation 
 under 

section 18

    (a)

    (1)
        (B) of the Federal Trade 
 Commission Act (15 U.S.C. 57a

    (a)

    (1)
        (B) ).

    (4) Authority preserved.--Nothing in this section may be 
 construed to limit the authority of the Commission under any 
 other provision of law.

    (b) Enforcement by States.--

    (1) In general.--If the attorney general of a State, or an 
 official or agency of a State, has reason to believe that an 
 interest of the residents of the State has been or is 
 threatened or adversely affected by an act or practice that 
 violates this Act, the State may bring a civil action on behalf 
 of the residents of the State in an appropriate district court 
 of the United States to obtain appropriate relief.

    (2) Rights of commission.--
        (A) Notice to commission.--
            (i) In general.--Except as provided in 
 clause
            (iii) , an attorney general, official, or 
 agency of a State, before filing a civil action 
 under paragraph

    (1) , shall provide written 
 notification to the Commission that the 
 attorney general, official, or agency intends 
 to bring such civil action.
            (ii) Contents.--The notification required 
 under clause
            (i) shall include a copy of the 
 complaint for the civil action.
            (iii) Exception.--If it is not feasible for 
 an attorney general, official, or agency of a 
 State to provide the notification required 
 under clause
            (i) before filing a civil action 
 under paragraph

    (1) , the attorney general, 
 official, or agency shall provide the 
 notification to the Commission immediately upon 
 the filing of the civil action.
        (B) Intervention by commission.--The Commission 
 may--
            (i) intervene in any civil action filed by 
 an attorney general, official, or agency of a 
 State under paragraph

    (1) ; and
            (ii) upon so intervening--
            (I) be heard on all matters arising 
 in the civil action; and
            (II) appeal a decision in the civil 
 action.
            (C) Limitation on state action while federal action 
 is pending.--If the Commission or the Attorney General 
 of the United States has instituted a civil action for 
 violation of this Act (referred to in this subparagraph 
 as the ``Federal action''), no State attorney general, 
 official, or agency may bring an action under paragraph

    (1) during the pendency of the Federal action against 
 any defendant named in the complaint in the Federal 
 action for any violation of such Act alleged in such 
 complaint.

    (3) Rule of construction.--For purposes of bringing a civil 
 action under paragraph

    (1) , nothing in this Act may be 
 construed to prevent an attorney general, official, or agency 
 of a State from exercising the powers conferred on the attorney 
 general, official, or agency by the laws of the State to 
 conduct investigations, administer oaths or affirmations, or 
 compel the attendance of witnesses or the production of 
 documentary or other evidence.

SEC. 4. EFFECT ON STATE LAW.

    (a) In General.--A State, or political subdivision of a State, may 
not maintain, enforce, prescribe, or continue in effect any law, rule, 
regulation, requirement, standard, or other provision having the force 
and effect of law of the State, or political subdivision of the State, 
that--

    (1) prohibits a covered company from engaging in any 
 conduct prohibited by 

section 2; or

    (2) requires a covered company to take any action required 
 by 

section 2.

    (b) Rule of Construction.--This section may not be construed to--

    (1) preempt any law of a State or political subdivision of 
 a State relating to contracts, torts, or unfair competition; or

    (2) preempt any law of a State or political subdivision of 
 a State to the extent that such law relates to an act of fraud, 
 unauthorized access to personal information, or notification of 
 unauthorized access to personal information.

SEC. 5. RULES OF CONSTRUCTION.

 Nothing in this Act may be construed--

    (1) to limit--
        (A) any authority of the Federal Trade Commission 
 under the Federal Trade Commission Act (15 U.S.C. 41 et 
 seq.), or any other provision of law; or
        (B) the application of any Federal law;

    (2) to require a covered company--
        (A) to provide service under a hardware or software 
 warranty for damage caused by a third-party app or app 
 store installed through means other than an app store 
 owned or controlled by the covered company; or
        (B) to provide customer service for the 
 installation or operation of such a third-party app or 
 app store;

    (3) to prevent an action taken by a covered company that is 
 reasonably tailored to protect the rights of a person under 
 

section 106, 1101, 1201, or 1401 of title 17, United States 
 Code, or rights actionable under sections 32 or 43 of the Act 
 entitled ``An Act to provide for the registration and 
 protection of trademarks used in commerce, to carry out the 
 provisions of certain international conventions, and for other 
 purposes'', approved July 5, 1946 (commonly known as the 
 ``Lanham Act'' or the ``Trademark Act of 1946'') (15 U.S.C. 
 1114, 1125), or corollary State law;

    (4) to require a covered company to license any 
 intellectual property, including any trade secrets, owned by or 
 licensed to the covered company;

    (5) to prevent a covered company from asserting rights of 
 the covered company under intellectual property law to prevent 
 the unlawful use of any intellectual property owned by or duly 
 licensed to the covered company;

    (6) to require a covered company to work with or share data 
 with any person who--
        (A) is on any list maintained by the Federal 
 Government by which entities are identified as limited 
 or prohibited from engaging in economic transactions as 
 part of United States sanctions or export control 
 regimes;
        (B) is a foreign entity that has been identified by 
 the Federal Government as a national security, 
 intelligence, or law enforcement risk, including the 
 Government of the People's Republic of China or the 
 government of a foreign adversary (as defined in 
 

section 8
            (c) (2) of the Secure and Trusted 
 Communications Networks Act of 2019 (473 U.S.C. 
 1607
            (c) (2) )); or
            (C) is a foreign adversary controlled application 
 (as defined in 

section 2

    (g)

    (3) of the Protecting 
 Americans from Foreign Adversary Controlled 
 Applications Act (Public Law 118-50; 15 U.S.C. 9901 
 note)); or

    (7) to limit any Federal or State law relating to 
 antitrust.

SEC. 6. DEFINITIONS.

 In this Act:

    (1) App.--The term ``app'' means a software application or 
 electronic service that may be run or directed by a user on a 
 computer, a mobile device, or any other general purpose 
 consumer computing device.

    (2) App store.--The term ``app store'' means a publicly 
 available website, software application, or other electronic 
 service that may distribute apps from third-party developers to 
 users of a computer, a mobile device, or any other general 
 purpose consumer computing device.

    (3) Commission.--The term ``Commission'' means the Federal 
 Trade Commission.

    (4) Covered company.--The term ``covered company'' means 
 any person who owns or controls--
        (A) an app store for which the number of users in 
 the United States exceeds 100,000,000; and
        (B) the operating system on which such app store 
 operates.

    (5) Developer.--The term ``developer'' means a person who 
 owns or controls an app or an app store.

    (6) In-app payment system.--The term ``in-app payment 
 system'' means an application, service, or user interface to 
 manage billing or process a payment from a user of an app.

    (7) Nonpublic business information.--The term ``nonpublic 
 business information'' means nonpublic data that is--
        (A) derived from a developer or an app or app store 
 owned or controlled by a developer, including an 
 interaction between a user and the app or app store of 
 the developer; and
        (B) collected by a covered company in the course of 
 operating an app store or providing an operating 
 system.

    (8) Operating system.--The term ``operating system'' 
 includes an operating system configuration.

SEC. 7. GUIDANCE; EFFECTIVE DATE.

    (a) FTC Guidance.--Not later than 180 days after the date of the 
enactment of this Act, the Commission shall issue guidance to assist 
covered companies in complying with this Act.

    (b) Effective Date.--This Act shall take effect on the date on 
which the Commission issues guidance under subsection

    (a) .
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