New US legislation could force Apple to allow default third-party app stores on iOS

A new bill introduced in the United States House of Representatives could significantly reshape the mobile app marketplace by requiring Apple and Google to support third-party app stores and allow users to set them as default options.

The App Store Freedom Act, introduced by Representative Kat Cammack (R-FL) on Tuesday, seeks to “promote competition and protect consumers and developers” by curbing what it calls anti-competitive behaviour by dominant app store operators. According to a press release from Cammack and reporting by The Verge, the bill targets platforms with more than 100 million users in the US, effectively singling out Apple’s App Store and Google Play.

Under the proposed law, companies would be required to:

• Allow users to download and set third-party app stores as defaults
• Enable removal or hiding of pre-installed apps
• Let developers offer alternative in-app payment systems
• Provide developers equal access to key system features and APIs without cost or discrimination

Failure to comply could result in enforcement actions by the Federal Trade Commission (FTC) and civil penalties of up to $1 million per violation.

“Dominant app stores have controlled customer data and forced consumers to use the marketplaces’ own merchant services, instead of the native, in-app offerings provided by the applications and developers themselves,” Cammack said in the announcement, as quoted by The Verge. “The results are higher prices and limited selections for consumers and anti-competitive practices for developers that have stifled innovation.”

As PCMag reports, the bill’s provisions resemble those in the European Union’s Digital Markets Act (DMA), which has already forced Apple to open up its iOS platform. Apple was fined €1.8 billion ($1.9 billion) earlier this year over antitrust violations related to music streaming apps, and in April 2024, the first third-party app store officially launched on iPhones in Europe.

The DMA has also mandated that Apple and others make previously restricted features, such as AirDrop, AirPlay, and automatic audio switching, accessible to developers by 2026.

In the US, courts have started pushing back against similar restrictions. A judge ordered Google to allow third-party app stores in late 2023, and a ruling in the Epic v. Apple case forced Apple to permit developers to guide users to external payment systems. Apple recently began complying with that ruling, as noted by The Verge.

In support of the legislation, a Spotify spokesperson said in Cammack’s press release: “The App Store Freedom Act could be a game-changer for American consumers by giving them more choice and control over their devices than ever before. We applaud Representative Kat Cammack for introducing common-sense rules of the road to permanently open up the app economy, unlock new opportunities for businesses and creators, and encourage even stronger tech innovation in the United States.”