Open App Markets Act

The Open App Markets Act aims to promote competition and reduce gatekeeper power in the app economy by increasing choice, improving quality, and reducing costs for consumers. It imposes rules on large app store operators (covered companies) that control both an app store with over 50 million monthly U.S. users and the operating system it runs on.

Sec. 2, Definitions: Defines key terms including 'app,' 'app store,' 'covered company' (a person owning an app store with over 50 million monthly U.S. users and the operating system it operates on), 'developer,' 'in-app payment system,' and 'nonpublic business information' (data derived from developers collected by a covered company).

Sec. 3, Protecting a competitive app market: Prohibits covered companies from requiring developers to use their in-app payment system, imposing pricing parity across app stores, or retaliating against developers for using other payment systems or app stores. It also bans restrictions on developer-user communications, use of nonpublic business information to compete with third-party apps, and requires allowing users to choose third-party apps/stores as defaults, install them via other means, and hide or delete preinstalled apps. It prohibits unequal treatment in search rankings (excluding clearly disclosed ads) and mandates access to operating system interfaces and documentation for developers on equivalent terms.

Sec. 4, Protecting the security and privacy of users: Allows covered companies to take actions that would otherwise violate Sec. 3 if necessary for user privacy/security, spam/fraud prevention, intellectual property protection, or legal compliance. Such actions must be consistently applied, narrowly tailored, and certified by a principal executive officer as not pretextual.

Sec. 5, Enforcement: Empowers the Federal Trade Commission, the Attorney General, and state attorneys general to enforce the Act under existing antitrust laws. The FTC can sue for civil penalties, and state attorneys general can bring parens patriae actions. Developers injured by violations can sue for treble damages and injunctive relief, except for developers owned or controlled by a foreign state.

Sec. 6, Reporting: Requires the FTC, Comptroller General, and DOJ Antitrust Division to each review and analyze the Act's impact on competition, innovation, barriers to entry, and market power within three years of enactment.

Sec. 7, Rule of construction: Clarifies that the Act does not limit existing antitrust authority, require covered companies to provide warranties or customer service for third-party apps, prevent actions to protect intellectual property rights, require licensing of intellectual property, or require interoperability with entities on U.S. sanctions lists, foreign adversaries, or those engaged in illegal activity.

Sec. 8, Severability: If any provision is held unconstitutional, the remaining provisions remain in effect.

Sec. 9, Effective date: The Act takes effect 180 days after enactment.