HLS 22RS-984 ENGROSSED 2022 Regular Session HOUSE BILL NO. 641 BY REPRESENTATIVE DESHOTEL COMMERCE: Provides relative to digital application distribution platforms 1 AN ACT 2To enact R.S. 51:1429, relative to digital application distribution platforms; to prohibit 3 providers of digital application distribution platforms under certain circumstances; 4 to provide for procedures for violations; to provide for an exception; to provide for 5 definitions; and to provide for related matters. 6Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 51:1429 is hereby enacted to read as follows: 8 ยง1429. Digital application distribution platforms; definitions; prohibitions 9 A. For purposes of this Section, the following terms have the following 10 meanings: 11 (1) "Developer" means a creator of a software application that is made 12 available for download by a user through a digital application distribution platform 13 or other digital distribution platform. 14 (2) "Digital application distribution platform" means each of the following: 15 (a) A digital distribution platform for an application and service that is 16 provided to a user on a general-purpose operating system. 17 (b) A digital distribution platform that is provided or used for only a specific 18 type of device, including a certain grade of a computing device, a device that is made 19 by only a particular manufacturer, or a device that runs a particular operating system. Page 1 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-984 ENGROSSED HB NO. 641 1 (3) "Domiciled in this state" means a person that conducts a substantial 2 portion of work to create or to maintain a digital application in this state. 3 (4) "General-purpose operating system" means an operating system for 4 general-purpose hardware, including mobile phones, smart phones, tablets, personal 5 computers, and other general-purpose devices that are connected to the internet. 6 (5) "In-application payment system" means an application, service, or user 7 interface that is used to process payments from a user to a developer for a software 8 application and a digital and physical product and service distributed through a 9 software application. 10 (6) "Louisiana user" means a user whose most recent address shown in the 11 records of a provider is located within this state. 12 (7) "Provider" means a person who owns, operates, implements, or maintains 13 a digital application distribution platform or an in-application payment system. 14 (8) "Special-purpose digital application distribution platform" means a 15 digital distribution platform for a single or specialized category of application or a 16 software and service provided to a user on hardware intended primarily for a specific 17 purpose, including a gaming console, music player, and any other special-purpose 18 device that is connected to the internet. 19 B. If the cumulative downloads of a software application by a provider of a 20 general-purpose operating system with a digital application distribution platform to 21 Louisiana users exceed one million downloads in the previous or current calendar 22 year, a provider of a digital application distribution platform shall not do any of the 23 following: 24 (1) Require a developer that is domiciled in this state to use a particular in- 25 application payment system as the exclusive mode of accepting payments from a 26 user to download a software application onto the operating system or purchase a 27 digital or physical product or service through a software application installed on the 28 operating system. Page 2 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-984 ENGROSSED HB NO. 641 1 (2) Require exclusive use of a particular in-application payment system as 2 the exclusive mode of accepting payments from a Louisiana user to download a 3 software application onto the operating system or purchase a digital or physical 4 product or service through a software application installed on the operating system. 5 (3) Retaliate against a developer that is domiciled in this state or a Louisiana 6 user for using an in-application payment system or digital application distribution 7 platform that is not owned by, operated by, or affiliated with the provider or retaliate 8 against a developer for that use to distribute an application to or accept payments 9 from a Louisiana user. 10 C.(1) Any conduct in violation of this Section shall be deemed an unlawful 11 practice. 12 (2) A person aggrieved by a violation of this Section may bring an action to 13 enjoin the violation or for restitution. The court may award the plaintiff costs, 14 expenses, and reasonable attorney fees. 15 (3) The provisions of this Subsection shall not limit any other claims the 16 plaintiff may have under any other provision of law. 17 D. This Section shall not apply with respect to a special-purpose digital 18 application distribution platform. 19 E. The office of the attorney general shall receive complaints and investigate 20 violations of this Section and may bring an action in any court of competent 21 jurisdiction to obtain legal or equitable relief on behalf of a person aggrieved by the 22 violation. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 641 Engrossed 2022 Regular Session Deshotel Abstract: Provides relative to digital application distribution platforms. Proposed law provides definitions for developer, digital application distribution platform, domiciled in this state, general-purpose operating system, in-application payment system, Louisiana user, provider, and special-purpose digital application distribution platform. Page 3 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-984 ENGROSSED HB NO. 641 Proposed law provides that if the cumulative downloads of a software application by a provider of a general-purpose operating system with a digital application distribution platform to Louisiana users exceed 1 million downloads in the previous or current calendar year then the provider shall not do any of the following: (1)Require a developer domiciled in this state to use a particular in-application payment system as an exclusive mode of accepting payments from a user to download a software application onto the operating system or purchase a digital or physical product or service through a software application installed on the operating system. (2)Require exclusive use of a particular in-application payment system as the exclusive mode of accepting payments from a Louisiana user to download a software application onto the operating system or purchase a digital or physical product or service through a software application installed on the operating system. (3)Retaliate against a developer domiciled in this state or a Louisiana user for using an in-application payment system or digital application distribution platform that is not owned, operated, or affiliated with the provider or retaliate against a developer for that use to distribute an application to or accept payments from a Louisiana user. Proposed law provides that any conduct in violation of proposed law shall be deemed to be an unlawful practice. Proposed law further provides that a person aggrieved by a violation of proposed law may bring an action to enjoin the violation or an action for restitution. Proposed law provides that the court may award the plaintiff costs, expenses, and reasonable attorney fees. Proposed law further provides that proposed law does not limit any other claims the plaintiff may have under any other provision of law. Proposed law provides that proposed law shall not apply to a special-purpose digital application distribution platform. Proposed law provides that the attorney general's office shall receive complaints and investigate violations under proposed law. Proposed law further provides that the attorney general's office 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. (Adds R.S. 51:1429) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Commerce to the original bill: 1. Make technical changes. Page 4 of 4 CODING: Words in struck through type are deletions from existing law; words underscored are additions.