S T A T E O F N E W Y O R K
________________________________________________________________________
6526
2021-2022 Regular Sessions
I N A S S E M B L Y
March 19, 2021
___________
Introduced by M. of A. KELLES -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting
certain exclusivity policies imposed by digital application distrib-
ution platforms on digital application developers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general business law is amended by adding a new article
45 to read as follows:
ARTICLE 45
DIGITAL APPLICATIONS
SECTION 1500. DEFINITIONS.
1501. DIGITAL APPLICATION DISTRIBUTION PLATFORMS.
§ 1500. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
1. "DIGITAL APPLICATION" MEANS ANY APPLICATION SOFTWARE PROGRAM OR
GROUP OF PROGRAMS DESIGNED TO BE DOWNLOADED OR ACCESSED ON AN ELECTRONIC
DEVICE INCLUDING, BUT NOT LIMITED TO A COMPUTER, SMARTPHONE, TABLET, OR
OTHER SIMILAR DEVICE BY AN END-USER.
2. "DEVELOPER" MEANS THE CREATOR OF A DIGITAL APPLICATION MADE AVAIL-
ABLE FOR DOWNLOAD BY END-USERS THROUGH A DIGITAL APPLICATION DISTRIB-
UTION PLATFORM OR OTHER DIGITAL DISTRIBUTION PLATFORM.
3. "DIGITAL APPLICATION DISTRIBUTION PLATFORM" MEANS A DIGITAL
DISTRIBUTION PLATFORM FOR APPLICATIONS AND SERVICES PROVIDED TO A USER
ON AN ELECTRONIC DEVICE INCLUDING, BUT NOT LIMITED TO, A SMARTPHONE,
TABLET, COMPUTER, OR OTHER SIMILAR DEVICE.
4. "SPECIAL-PURPOSE DIGITAL APPLICATION DISTRIBUTION PLATFORM" MEANS A
DIGITAL DISTRIBUTION PLATFORM FOR SINGLE OR SPECIALIZED CATEGORIES OF
DIGITAL APPLICATIONS, SOFTWARE, AND SERVICES PROVIDED TO AN END-USER ON
SPECIAL-PURPOSE HARDWARE INCLUDING, BUT NOT LIMITED TO, A GAMING
CONSOLE, MUSIC PLAYER, OR OTHER SIMILAR SPECIAL-PURPOSE DEVICE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09768-01-1
A. 6526 2
5. "DIGITAL PAYMENT APPLICATION" MEANS A DIGITAL APPLICATION, SERVICE,
OR USER INTERFACE USED TO PROCESS A PAYMENT OR MONEY TRANSFER FROM AN
INDIVIDUAL OR ENTITY TO ANOTHER INDIVIDUAL OR ENTITY.
§ 1501. DIGITAL APPLICATION DISTRIBUTION PLATFORMS. 1. A PROPRIETOR OF
A DIGITAL APPLICATION DISTRIBUTION PLATFORM FOR WHICH CUMULATIVE GROSS
RECEIPTS FROM SALES ON SUCH DIGITAL APPLICATION DISTRIBUTION PLATFORM TO
RESIDENTS OF THIS STATE EXCEED TEN MILLION DOLLARS IN THE PREVIOUS OR
CURRENT CALENDAR YEAR SHALL NOT:
(A) REQUIRE A DEVELOPER TO USE A SPECIFIC DIGITAL APPLICATION DISTRIB-
UTION PLATFORM AS THE EXCLUSIVE MODE OF DISTRIBUTING A DIGITAL APPLICA-
TION OR OTHER DIGITAL PRODUCT;
(B) REQUIRE A DEVELOPER TO USE A SPECIFIC DIGITAL PAYMENT APPLICATION
AS THE EXCLUSIVE MODE OF ACCEPTING PAYMENT FROM A USER TO DOWNLOAD A
DIGITAL APPLICATION OR PURCHASE A DIGITAL OR PHYSICAL PRODUCT THROUGH
SUCH DIGITAL APPLICATION; OR
(C) RETALIATE AGAINST A DEVELOPER FOR CHOOSING TO USE AN ALTERNATIVE
DIGITAL APPLICATION DISTRIBUTION PLATFORM OR DIGITAL PAYMENT APPLICA-
TION.
2. ANY CONTRACT OR AGREEMENT THAT VIOLATES THIS SECTION SHALL BE UNEN-
FORCEABLE AND SHALL BE DEEMED A VIOLATION OF THIS SECTION.
3. THIS SECTION SHALL NOT APPLY TO A PROPRIETOR OF A SPECIAL-PURPOSE
DIGITAL APPLICATION DISTRIBUTION PLATFORM.
4. THE ATTORNEY GENERAL SHALL RECEIVE COMPLAINTS AND INVESTIGATE
VIOLATIONS OF THIS SECTION AND MAY BRING AN ACTION IN ANY COURT OF
COMPETENT JURISDICTION TO OBTAIN LEGAL OR EQUITABLE RELIEF ON BEHALF OF
AN INDIVIDUAL AGGRIEVED BY A VIOLATION OF THIS SECTION.
§ 2. This act shall take effect immediately.