New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S1423

Introduced
2/10/22  

Caption

Prohibits certain digital application distribution platforms from engaging in certain payment-for-service practices.

Impact

If passed, SB 1423 would represent a significant shift in state law concerning how digital platforms operate within New Jersey. The bill recognizes the growing concern over the power dynamics in the digital marketplace, particularly how large platforms can impose restrictive payment practices on developers. By preventing platforms from enforcing exclusivity on payment systems, the legislation aims to cultivate a more equitable environment for developers and enhance consumer choice, potentially leading to more innovation in the digital application sector.

Summary

Senate Bill 1423 aims to regulate practices of digital application distribution platforms, specifically those that exceed one million downloads within a given calendar year. The bill prohibits such platforms from mandating software developers, especially those based in New Jersey, to use a specific in-application payment system to process payments for downloading applications or purchasing products and services. This measure seeks to foster fair competition and prevent monopolistic practices that can disadvantage local developers and users.

Contention

The bill may face notable contention, particularly from major digital application distribution platforms that could view this legislation as an interference in their business operations. Supporters argue that it is necessary to protect local developers and users from unfair practices that limit their choices, while opponents may argue it could stifle certain operational models that are essential for sustaining large platforms. The involvement of the Attorney General in investigating and enforcing violations further underscores the bill's serious intent to hold platforms accountable for their payment practices.

Companion Bills

No companion bills found.

Previously Filed As

NJ SB169

Prohibits a third-party reservation service platform provider from engaging in certain activities. (BDR 52-627)

NJ HB1658

relative to parental consent and age verification for digital application platforms.

NJ S4035

Prohibits social media platforms from using certain practices or features that cause child users to become addicted to platform.

NJ A2739

Prohibits social media platforms from promoting certain practices or features of eating disorders to child users.

NJ S3095

Prohibits residential landlord from imposing certain surcharges for rent payments.

NJ HB1504

prohibiting retailers from engaging in price gouging on certain necessary products and services.

NJ SB2420

Relating to the regulation of platforms for the sale and distribution of software applications for mobile devices.

NJ S2711

Requires BPU to prohibit electric and gas public utilities from charging residential customers certain types of payments based on certain billing practices.

NJ SB362

Forged Digital Likenesses - Distribution - Prohibition

NJ HF2648

Certain sex offenders prohibited from accessing social media platforms.

Similar Bills

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California AI Transparency Act: system provenance data.

UT HB0276

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CA AB853

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IA SF207

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CA AB1245

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HI HB1635

Relating To Taxation.

TX HB3694

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CA SB1142

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