MISSISSIPPI LEGISLATURE

2022 Regular Session

To: Banking and Financial Services; Judiciary A

By: Representative Bell (65th)

House Bill 1395

AN ACT TO ESTABLISH THE "MISSISSIPPI DIGITAL APPLICATION DISTRIBUTION PLATFORM ACT"; TO DEFINE CERTAIN TERMS RELATING TO DIGITAL APPLICATION DISTRIBUTION PLATFORMS; TO PROHIBIT CERTAIN PROVIDERS OF DIGITAL APPLICATION DISTRIBUTION PLATFORMS FROM REQUIRING A DEVELOPER THAT IS DOMICILED IN MISSISSIPPI TO USE A PARTICULAR IN-APPLICATION PAYMENT SYSTEM AS THE EXCLUSIVE MODE OF ACCEPTING PAYMENTS; TO PROHIBIT CERTAIN PROVIDERS OF DIGITAL APPLICATION DISTRIBUTION PLATFORMS FROM REQUIRING EXCLUSIVE USE OF A PARTICULAR IN-APPLICATION PAYMENT SYSTEM AS THE EXCLUSIVE MODE OF ACCEPTING PAYMENTS FROM MISSISSIPPI USERS TO DOWNLOAD A SOFTWARE APPLICATION OR PURCHASE A DIGITAL OR PHYSICAL PRODUCT OR SERVICE THROUGH A SOFTWARE APPLICATION; TO PROHIBIT CERTAIN PROVIDERS OF DIGITAL APPLICATION DISTRIBUTION PLATFORMS FROM RETALIATING AGAINST A DEVELOPER THAT IS DOMICILED IN MISSISSIPPI OR A MISSISSIPPI USER FOR USING AN IN-APPLICATION PAYMENT SYSTEM OR DIGITAL APPLICATION DISTRIBUTION PLATFORM THAT IS NOT OWNED BY, OPERATED BY OR AFFILIATED WITH THE PROVIDER OR RETALIATE AGAINST A DEVELOPER FOR THAT USE TO DISTRIBUTE APPLICATIONS TO OR ACCEPT PAYMENTS FROM MISSISSIPPI USERS; TO PROVIDE THAT ANY PERSON AGGRIEVED BY A VIOLATION OF THIS SECTION MAY, IN ANY COURT OF COMPETENT JURISDICTION, COMMENCE A CIVIL ACTION TO OBTAIN APPROPRIATE RELIEF, INCLUDING REASONABLE ATTORNEY FEES AND COSTS; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  This act shall be known and may be cited as the "Mississippi Digital Application Distribution Platform Act".

     SECTION 2.  (1)  As used in this act, the following terms shall have the following meanings, unless the context clearly indicates otherwise:

          (a)  "Mississippi user" means a user whose most recent address shown in the records of a provider is located within the State of Mississippi.

          (b)  "Developer" means a creator of software applications that are made available for download by users through a digital application distribution platform or other digital distribution platform.

          (c)   "Digital application distribution platform" means a digital distribution platform for applications and services that are provided to users on general-purpose hardware, including mobile phones, smartphones, tablets, personal computers and other general purpose devices that are connected to the internet.

     The term "digital application distribution platform" includes a digital distribution platform that is provided or used for only certain types of devices, such as certain grades of computing devices, devices that are made by only a particular manufacturer or devices that run a particular operating system.

          (d)  "Domiciled in Mississippi" means a person that conducts, in the State of Mississippi, the substantial portion of work to create or to maintain digital applications.

          (e)  "In-application payment system" means an application, service or user interface that is used to process payments from users to developers for software applications and digital and physical products and services distributed through software applications.

          (f)  "Provider" means a person that owns, operates, implements or maintains a digital application distribution platform or an in-application payment system.

          (g)  "Special-purpose digital application distribution platform" means a digital distribution platform established primarily for use by public safety agencies or for single or specialized categories of applications, software and services that are provided to users on hardware intended primarily for specific purposes, including gaming consoles, music players and other special-purpose devices that are connected to the Internet.

     (2)  A provider of a digital application distribution platform for which cumulative downloads of software applications from the digital application distribution platform to Mississippi users exceed one million downloads in the previous or current calendar year may not do any of the following:

          (a)  Require a developer that is domiciled in Mississippi to use a particular in-application payment system as the exclusive mode of accepting payments from a user to download a software application or purchase a digital or physical product or service through a software application.

          (b)  Require exclusive use of a particular in-application payment system as the exclusive mode of accepting payments from Mississippi users to download a software application or purchase a digital or physical product or service through a software application.

          (c)  Retaliate against a developer that is domiciled in Mississippi or a Mississippi user for using an in-application payment system or digital application distribution platform that is not owned by, operated by or affiliated with the provider or retaliate against a developer for that use to distribute applications to or accept payments from Mississippi users.

     (3)  This act does not apply with respect to special-purpose digital application distribution platforms.

     (4)  Any person aggrieved by a violation of this act may, in any court of competent jurisdiction, commence a civil action to obtain appropriate relief, including reasonable attorney fees and costs.

     SECTION 3.  This act shall take effect and be in force from and after July 1, 2022.