The App Store Freedom Act aims to increase competition in digital app marketplaces by restricting the power of major tech companies that own both operating systems and app stores. The bill requires these "covered companies"—defined as those controlling app stores with over 100 million U.S. users—to allow users to install competing app stores, set different default apps, and give app developers equal access to the same tools and features the company uses internally. The legislation prohibits these companies from forcing developers to use their payment systems, punishing developers who use competing payment options, or blocking users from communicating about alternative pricing. Violations are treated as unfair or deceptive trade practices enforceable by the Federal Trade Commission, which can impose penalties of up to $1 million per violation, and state attorneys general are also authorized to bring enforcement actions. The law takes effect 180 days after enactment, once the FTC issues compliance guidance, and includes carve-outs for intellectual property protection, national security concerns, and other federal and state antitrust laws.
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