,,ii #aaith ,,congress #ast ,session ,s4 #baec ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #bd1 #bjbe,mrs4 ,blackburn 7for herself1 ,mr4 ,blumenthal1 ,mr4 ,lee1 ,ms4 ,klobuchar1 and ,mr4 ,durbin7 introduced the following bill2 which was read twice and referred to the ,committee on the ,judiciary ,a ,,bill ,to promote competition and reduce gatekeeper power in the app economy1 increase choice1 improve quality1 and reduce costs for consumers4 #a4 ,short title ,this ,act may be cited as the ,open ,app ,markets ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,app ,the term app means a software application or electronic service that may be run or directed by a user on a computer1 a mobile device1 or any other general purpose consumer computing device4 7#b7 ,app store ,the term app store means a publicly available website1 software application1 or other electronic service that distributes apps from third-party developers to users of a computer1 a mobile device1 or any other general purpose consumer computing device4 7#c7 ,covered company ,the term covered company means any person that owns or controls-- 7,a7 an app store for which users in the ,united ,states exceed #ej1jjj1jjj on a monthly basis 7inclusive of support functions associated with the app store such as updates to apps72 and 7,b7 the operating system or operating system configuration on which the app store described in subparagraph 7,a7 operates4 7#d7 ,developer ,the term developer means a person that owns or controls an app or an app store4 7#e7 ,in-app payment system ,the term in-app payment system means an application1 service1 or user interface to manage billing or process the payments from users of an app4 7#f7 ,nonpublic business information ,the term nonpublic business information means nonpublic data that is-- 7,a7 derived from a developer or an app or app store owned or controlled by a developer1 including interactions between users and the app or app store of the developer2 and 7,b7 collected by a covered company in the course of operating an app store or providing an operating system4 #c4 ,protecting a competitive app market 7a7 ,exclusivity and tying ,a covered company shall not-- 7#a7 require developers to use or enable an in-app payment system owned or controlled by the covered company or any of its business partners as a condition of the distribution of an app on an app store or being accessible on an operating system2 7#b7 require as a term of distribution on an app store that pricing terms or conditions of sale be equal to or more favorable on its app store than the terms or conditions under another app store2 or 7#c7 take punitive action or otherwise impose less favorable terms and conditions against a developer-- 7,a7 for using or offering different pricing terms or conditions of sale through another in-app payment system or on another app store2 or 7,b7 on the basis that an app provides access to other third-party apps or games through remote electronic services rather than through download from an app store4 7b7 ,interference with legitimate business communications ,a covered company shall not impose restrictions on communications of developers with the users of an app of the developer through the app or direct outreach to a user concerning legitimate business offers1 such as pricing terms and product or service offerings4 ,nothing in this subsection shall prohibit a covered company from requiring that an app acquire user consent prior to the collection and sharing of the data of the user by an app4 7c7 ,nonpublic business information ,a covered company shall not use nonpublic business information derived from a third-party app for the purpose of competing with that app4 7d7 ,interoperability ,a covered company that controls the operating system or operating system configuration on which its app store operates shall allow and provide readily accessible means for users of that operating system to-- 7#a7 choose third-party apps or app stores as defaults2 7#b7 install third-party apps or app stores through means other than its app store2 and 7#c7 hide or delete apps or app stores provided or preinstalled by the covered company or any of its business partners4 7e7 ,self-,preferencing in search 7#a7 ,in general ,a covered company shall not provide unequal treatment of apps in an app store through ranking schemes1 user interface features1 or algorithms that unreasonably preference or rank the apps of the covered company or any of its business partners over those of other apps in organic search results4 7#b7 ,considerations ,unreasonably preferencing does not include clearly disclosed advertising4 7f7 ,open app development 7#a7 ,access ,a covered company shall provide access to operating system interfaces and hardware and software features to developers that are generally available to the public4 7#b7 ,documentation ,a covered company shall provide documentation and development information sufficient to access such interfaces and features4 7#c7 ,timely and equivalent basis ,a covered company shall provide the access and documentation under this subsection on a reasonably timely basis and on terms that are equivalent to the terms for access by the covered company or to its business partners4 #d4 ,protecting the security and privacy of users 7a7 ,in general 7#a7 ,no violation ,subject to section 7b71 a covered company shall not be in violation of section #c for an action that is-- 7,a7 necessary to achieve user privacy or security2 7,b7 taken to prevent spam or fraud2 7,c7 necessary to prevent unlawful infringement of preexisting intellectual property2 or 7,d7 taken to prevent a violation of1 or comply with1 ,federal or ,state law4 7#b7 ,privacy and security protections ,in paragraph 7#a71 the term necessary to achieve user privacy or security includes-- 7,a7 allowing an end user to opt in1 and providing information regarding the reasonable risks1 prior to enabling installation of the third-party apps or app stores2 7,b7 removing malicious or fraudulent apps or app stores from an end user device2 7,c7 providing an end user with the means to verify the authenticity and origin of third-party apps or app stores2 and 7,d7 providing an end user with the option to limit access to the user's device or device features1 or limit the collection and sharing of the data of the user with third-party apps or app stores4 7b7 ,requirements 7#a7 ,in general ,subsection 7a7 shall only apply if the covered company establishes by a preponderance of the evidence that the action described in that subsection is-- 7,a7 applied on a demonstrably consistent basis to-- 7i7 apps of the covered company or its business partners2 and 7ii7 other apps2 and 7,b7 narrowly tailored and could not be achieved through a less discriminatory and technically possible means4 7#b7 ,certification ,the principal executive officer or officers of the covered company1 or persons performing similar functions shall submit to the court a certification made under penalty of perjury in accordance with section #agdf of title #bh1 ,united ,states ,code1 that the action described in subsection 7a7 is not used as a pretext to exclude1 or impose unnecessary or discriminatory terms on1 third-party apps1 in-app payment systems1 or alternative app stores4 #e4 ,enforcement 7a7 ,enforcement 7#a7 ,in general ,the ,federal ,trade ,commission1 the ,attorney ,general1 and any attorney general of a ,state subject to the requirements in paragraph 7#c7 shall enforce this ,act in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq471 the ,sherman ,act 7#ae ,u4,s4,c4 #a et seq471 the ,clayton ,act 7#ae ,u4,s4,c4 #ab et seq471 and the ,antitrust ,civil ,process ,act 7#ae ,u4,s4,c4 #acaa et seq471 as appropriate1 were incorporated into and made a part of this ,act4 7#b7 ,federal trade commission independent litigation authority ,if the ,federal ,trade ,commission has reason to believe that a covered company violated this ,act1 the ,federal ,trade ,commission may commence a civil action1 in its own name by any of its attorneys designated by it for such purpose1 to recover a civil penalty and seek other appropriate relief in a district court of the ,united ,states against the covered company4 7#c7 ,parens patriae ,any attorney general of a ,state may bring a civil action in the name of such ,state for a violation of this ,act as parens patriae on behalf of natural persons residing in such ,state1 in any district court of the ,united ,states having jurisdiction of the defendant1 and may secure any form of relief provided for in this section4 7b7 ,suits by developers injured 7#a7 ,in general ,except as provided in paragraph 7#c71 any developer injured by reason of anything forbidden in this ,act may sue therefor in any district court of the ,united ,states in the district in which the defendant resides or is found or has an agent1 without respect to the amount in controversy1 and shall recover threefold the damages by the developer sustained and the cost of suit1 including a reasonable attorney's fee4 ,the court may award under this paragraph1 pursuant to a motion by such developer promptly made1 simple interest on actual damages for the period beginning on the date of service of the pleading of the developer setting forth a claim under this ,act and ending on the date of judgment1 or for any shorter period therein1 if the court finds that the award of such interest for such period is just in the circumstances4 ,in determining whether an award of interest under this paragraph for any period is just in the circumstances1 the court shall consider only-- 7,a7 whether the developer or the opposing party1 or either party's representative1 made motions or asserted claims or defenses so lacking in merit as to show that such party or representative acted intentionally for delay or otherwise acted in bad faith2 7,b7 whether1 in the course of the action involved1 the developer or the opposing party1 or either party's representative1 violated any applicable rule1 statute1 or court order providing for sanctions for dilatory behavior or otherwise providing for expeditious proceedings2 and 7,c7 whether the developer or the opposing party1 or either party's representative1 engaged in conduct primarily for the purpose of delaying the litigation or increasing the cost thereof4 7#b7 ,injunctive relief ,except as provided in paragraph 7#c71 any developer shall be entitled to sue for and have injunctive relief1 in any court of the ,united ,states having jurisdiction over the parties1 against threatened loss or damage by a violation of this ,act1 when and under the same conditions and principles as injunctive relief against threatened conduct that will cause loss or damage is granted by courts of equity1 under the rules governing such proceedings1 and upon the execution of proper bond against damages for an injunction improvidently granted and a showing that the danger of irreparable loss or damage is immediate1 a preliminary injunction may issue4 ,in any action under this paragraph in which the plaintiff substantially prevails1 the court shall award the cost of suit1 including a reasonable attorney's fee1 to such plaintiff4 7#c7 ,foreign state-owned enterprises ,a developer of an app that is owned by1 or under the control of1 a foreign state may not bring an action under this subsection4 #f4 ,reporting ,not later than #c years after the date of enactment of this ,act1 the ,federal ,trade ,commission1 the ,comptroller ,general of the ,united ,states1 and the ,antitrust ,division of the ,department of ,justice shall each separately review and provide an in-depth analysis of the impact of this ,act on competition1 innovation1 barriers to entry1 and concentrations of market power or market share after the date of enactment of this ,act4 #g4 ,rule of construction ,nothing in this ,act may be construed-- 7#a7 to limit-- 7,a7 any authority of the ,attorney ,general or the ,federal ,trade ,commission under the antitrust laws 7as defined in the first section of the ,clayton ,act 7#ae ,u4,s4,c4 #ab771 the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq471 or any other provision of law2 or 7,b7 the application of any law2 7#b7 to require-- 7,a7 a covered company to provide service under a hardware or software warranty for damage caused by third-party apps or app stores installed through means other than the app store of the covered company2 or 7,b7 customer service for the installation or operation of third-party apps or app stores described in subparagraph 7,a72 7#c7 to prevent an action taken by a covered company that is reasonably tailored to protect the rights of third parties under section #ajf1 #aaja1 #abja1 or #adja of title #ag1 ,united ,states ,code1 or rights actionable under sections #cb or #dc of the ,act entitled ,an ,act to provide for the registration and protection of trademarks used in commerce1 to carry out the provisions of certain international conventions1 and for other purposes1 approved ,july #e1 #aidf 7commonly known as the ,lanham ,act or the ,trademark ,act of #aidf7 7#ae ,u4,s4,c4 #aaad1 #aabe71 or corollary ,state law2 7#d7 to require a covered company to license any intellectual property1 including any trade secrets1 owned by or licensed to the covered company2 7#e7 to prevent a covered company from asserting preexisting rights of the covered company under intellectual property law to prevent the unlawful use of any intellectual property owned by or duly licensed to the covered company2 or 7#f7 to require a covered company to interoperate or share data with any person or business user that-- 7,a7 is on any list maintained by the ,federal ,government by which entities are identified as limited or prohibited from engaging in economic transactions as part of ,united ,states sanctions or export control regimes2 7,b7 is a foreign entity that has been identified by the ,federal ,government as a national security1 intelligence1 or law enforcement risk1 including the ,government of the ,people's ,republic of ,china or the government of a foreign adversary 7as defined in section #h7;c7 of the ,secure and ,trusted ,communications ,networks ,act of #bjai 7#dgc ,u4,s4,c4 #afjg7;c7772 or 7,c7 is engaged in illegal or fraudulent activity4 #h4 ,severability ,if any provision of this ,act1 or the application of such a provision to any person or circumstance1 is held to be unconstitutional1 the remaining provisions of this ,act1 and the application of such provisions to any person or circumstance shall not be affected thereby4 #i4 ,effective date ,this ,act shall take effect on the date that is #ahj days after the date of enactment of this ,act4