ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
JUDICIARY COMMITTEE
DATE: March 22, 2022
SUBJECT: Strike everything amendment to H.B. 2033, relating to prohibitions; digital
application distribution platforms
Purpose
Prohibits a provider of a digital application distribution platform from requiring the
exclusive use of an in-application payment system to download a software application or purchase
a digital or physical product or service through a software application.
Background
The Office of the Attorney General (AG) serves as the chief legal officer of Arizona and
receives complaints and investigates alleged violations relating to civil rights, consumer fraud and
other statutes as authorized (A.R.S. Title 41, Chapter 1, Article 5). The Office of the AG consists
of the Criminal Division, State Government Division, Child and Family Protection Division, Civil
Litigation Division, Appeals and Constitutional Litigation Division, Communications Division
and Operations Division (AG).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Prohibits a provider of a digital application distribution platform for which cumulative
software application downloads from the platform exceed 1,000,000 downloads in the previous
or current calendar year from:
a) requiring a developer that is domiciled in Arizona to use in-application payment systems
that are owned or controlled by the digital application distribution platform 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;
b) requiring exclusive use of in-application payment systems that are owned or controlled by
the digital application distribution platform for accepting payments from Arizona users to
download a software application or purchase a digital or physical product or service
through a software application; or
c) retaliating against a developer that is domiciled in Arizona for offering or accepting
payments with, or against an Arizona user for using, an in-application system that is not
owned by, operated by or affiliated with the provider.
2. Includes, among prohibited retaliatory acts, demoting the search rankings of the developer,
shifting fees toward the developer or slowing down the application review and approval
timelines.
ZACK DEAN
LEGISLATIVE RESEARCH ANALYST
JUDICIARY COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO
H.B. 2033
Page 2
3. Excludes, from the prohibitions, special-purpose digital application distribution platforms,
which are platforms established primarily for:
a) use by public safety agencies; or
b) single or specialized categories of applications, software and services provided to users on
hardware intended primarily for specific purposes, including gaming consoles, music
players and other special-purpose devices connected to the internet.
4. Allows the AG to receive complaints, investigate violations and bring an action in any court
of competent jurisdiction to obtain legal or equitable relief on behalf of a person aggrieved by
a violation.
5. Allows any person aggrieved by a violation to 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.
6. Prohibits a civil action from being commenced until 60 days after the plaintiff has notified the
AG, or if the AG is diligently prosecuting an action in court arising from the same alleged
violation.
7. Defines Arizona user as a user whose most recent address shown in the records of a provider
is located within Arizona and continues to be an Arizona user even when temporarily absent
from Arizona.
8. Defines developer as a creator of software applications that are made available for download
by users through a digital application distribution platform or other digital distribution
platform.
9. Defines digital application distribution platform as:
a) a digital distribution platform for applications and services that are provided to users on
mobile phones, smartphones or other mobile computing services and the devices run a
mobile operating system that is owned or controlled by the provider of the digital
distribution platform; and
b) includes a digital distribution platform that is provided or used for only certain types of
devices, such as certain grades or computing devices that are made by only a particular
manufacturer.
10. Defines domiciled in Arizona as a person that conducts in Arizona the substantial portion of
work to create or to maintain digital applications.
11. Defines in-application payment systems as 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.
12. Defines provider as a person that owns, operates implements or maintains a digital application
distribution platform or an in-application payment system.
13. Becomes effective on the general effective date.