The New York State Senate

 
                     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.