• by Wendy Davis , Staff Writer @wendyndavis, February 3, 2022

The Senate Judiciary Committee on Thursday advanced a bill that could transform the app marketplace by imposing new restrictions on Apple and Google.

Among other provisions, the “Open App Markets Act,” which passed out of committee by a vote of 20-2, would require app stores with more than 50 million U.S. users to allow “sideloading” -- that is, to enable people to download apps from outside sources.

Google already allows sideloading, but Apple famously does not.

Apple argues that its refusal to permit sideloading accounts for the low rate of malware on iPhones. One study recently flagged by Apple found that Android devices had 15 times more malware infections than iPhones.

Supporters of the proposed legislation dispute that it could create a security risk, arguing that the bill includes a provision allowing Apple and Google to remove “malicious or fraudulent apps” from their app stores and from users' devices. But Apple maintains that the sideloading mandate could allow developers to circumvent the company's privacy and security features.

Google already enables sideloading, but it's worth noting that the company faces a lawsuit by attorneys general who allege that Google makes the process “unnecessarily cumbersome and impractical.”

The Open App Markets Act -- proposed by Senators Richard Blumenthal (D-Connecticut), Amy Klobuchar (D-Minnesota) and Marsha Blackburn (R-Tennessee) -- would also prohibit Google and Apple from requiring use of their payment platforms for in-app purchases.

Epic Games recently sued Apple over that policy, arguing that the iPhone manufacturer monopolizes the iOS app-distribution market, forces developers to use its payment-processing system, and takes a commission of up to 30%.

U.S. District Court Judge Yvonne Gonzalez Rogers in Oakland, California ruled last year that Epic failed to prove Apple violated federal or state antitrust laws, but found that Apple violated a state law regarding unfair competition. She ordered Apple to allow developers to point users to outside payment platforms.

Apple appealed that portion of the decision to the 9th Circuit, which lifted the order last month.

The bill has drawn a wide range of reactions from business groups, app developers and consumer advocates. 

The U.S. Chamber of Commerce opposes the bill, contending it would “greatly increase the risk that users would unintentionally and unknowingly download malware.”

The business group also says the bill “runs counter to advice from the Federal Trade Commission, the National Security Agency, and the National Institute of Standards and Technology, which have all encouraged mobile device users to download apps only from official app stores.”

But the Coalition for App Fairness -- which counts Apple adversary Epic Games among its members -- counters that the proposed law would “hold gatekeeper platforms accountable, increase fair competition, and benefit consumers across the nation with greater choice and innovation.”

Advocacy groups including Public Knowledge and Consumer Reports also support the bill.

Consumer Reports researcher Sumit Sharma stated Wednesday that the proposed law “will allow consumers to get better deals by introducing competition in payment systems on smartphones."