United States of America: Introduction of Freedom to Subscribe Directly Act (SB 3417)

On 18 January 2022, the Freedom to Subscribe Directly Act (SB 3417) was introduced in the Illinois Senate. The Bill aims to secure consumer interests and safeguard competition in app markets. The Bill would apply to companies which provide a platform for the distribution of digital applications exceeding the threshold of 1 million cumulative downloads in the current or last calendar year. Such companies would have to refrain from imposing unfair conditions on app developers and users. Specifically, app store providers would be prohibited from obliging app developers to use a certain payment method for downloads or purchases. Furthermore, the Bill requires companies to refrain from imposing a certain payment system on users. Finally, it forbids app stores from taking any retaliatory action against app developers or users that use other digital application distribution platforms or payment systems. The Act, if approved, would be enforced by the Attorney General. Private individuals would be able to bring forward civil action against companies that have violated the provisions in the Act.