Arizona, as part of a coalition of states is suing Google in an antitrust case challenging the company’s control over its Android app store.
Google is facing a series of major antitrust cases, including a suit that the Justice Department and 14 states filed in October, focused on Google’s efforts to dominate the mobile search market; one from 38 states and territories filed in December, also focused on search; and a third suit by 15 states and territories related to Google’s power over the advertising technology.
As Big Tech continues to flex its monopolistic powers regulators have attempted to rein in the search giant in Arizona. State Rep. Regina Cobb had hoped to help consumers save money and innovators compete in the tech market this past legislative session. Rep. Biasiucci had thrown his support behind Cobb’s bill, which would have allowed app developers to avoid what the two lawmakers call “devastating” fees imposed by big tech monopolies.
That bill died an untimely death.
The heart of the lawsuit centers on Google’s exclusionary conduct which substantially shuts out competing app distribution channels. Google requires that app developers, that offer their apps through the Google Play Store, use Google Billing as a middleman. This arrangement forces app consumers to pay Google’s commission— up to 30 percent— on in-app purchases of digital content. This commission is much higher than what consumers would pay if they could choose from one of Google‘s competitors instead. The lawsuit alleges that Google works to discourage or prevent competition, violating federal and state antitrust laws.
When Google launched its Android OS, it originally promised to keep it an “open source” platform. The lawsuit alleges Google did not keep that promise. By promising to keep Android open, Google successfully enticed manufacturers (such as Samsung) and operators (such as Verizon) to adopt Android, and more importantly, to forgo competing with Google’s Play Store at that time. Google then shut down the Android ecosystem and relevant Android App Distribution Market as soon as it was feasible to do so, effectively trapping consumers and app developers in that ecosystem and removing any effective competition by (among other things) requiring manufacturers and operators to enter into various contractual and other restraints.
Arizona also alleges that Google engaged in conduct in violation of consumer protection laws by falsely representing that it would keep Android “open” and by issuing misleading warnings to consumers– that directly downloading an app would lead to disastrous consequences for the user and their device which also enhanced and protected Google’s monopoly position.
The complaint was filed in the U.S. District Court for the Northern District of California.
After raking in cash from taxpayers amounting to a staggering $4 billion surplus, Governor Ducey and Republican legislators have delivered big with a historic tax cut this year. At full implementation, the cuts enshrined in SB1827, SB1828, and SB1783 will total $1.8 billion, and this couldn’t have come at a better time.
While Arizona families and small businesses were struggling during covid shutdowns and trying to make ends meet, the tax collector was still busy collecting. And as all Arizonans were already being overtaxed, on the narrowest margin, Proposition 208 was passed threatening a 77% tax hike on many Arizonans and small businesses. The tax cuts in this year’s budget completely neutralize that threat.
The tax cut package will result in a tax cut for all Arizona taxpayers. At full implementation, the current four rates of 2.59%, 3.34%, 4.17%, and 4.5% (with a fifth Prop 208 rate of 8%) will be collapsed into one single rate of 2.5%.
But since Proposition 208 is voter protected, income above $250,000 ($500,000 for married filing jointly) would still be hit with the 3.5% “surcharge,” resulting in a top rate of 6%, leaving Arizona still uncompetitive. The tax cut package takes care of this, too, by capping the top rate any taxpayer will shoulder at 4.5%, or the current top marginal rate.
Finally, holding the Red4Ed Prop 208 proponents to the promise that their tax hike “legally” could not affect small businesses, SB1783 will create an optional alternative small business tax which will have a rate beginning at 3.5% this year, ratcheting down to match the new single individual income rate of 2.5%. This means that small businesses can bifurcate their business income from their personal income, filing it under the alternative small business tax and paying a rate of 2.5% instead of the capped 4.5% rate. To reiterate, this is small business income that by Prop 208 advocates own words was never supposed to be subject to the surcharge. SB1783 codifies that intent…
The Fiscal Year 2022 K-12 Education bill signed last week by Gov. Doug Ducey contains several provisions which could vastly change school transportation options for students during the 2021-2022 school year, especially those who live in rural areas or outside a district’s boundaries.
House Bill 2898 contains In Lieu of Transportation Grants (ILT Grants) which among other things allows a school district to use a portion of the district’s transportation funding to provide ILT Grants to parents of students who attend the school district.
The grants, which require a plan submission to the Arizona Department of Education, also permit charter schools to use a portion of its Charter Additional Assistance funding for the same purpose.
Among the offerings which can be included in an ILT Grant plan is financial support for an individual parent or a neighborhood carpool which transports students to school. The legislation also includes a provision protecting a school district which seeks to offer ILT Grants for its students from having its transportation funding allocations reduced.
Charter schools which use CAA funding for transportation awards to parents must report such expenditures to the Department of Education.
HB2898 also establishes a Public School Transportation Modernization Grants Program (PSTMG Program) through the Arizona Department of Administration. The program, which would end in 2025, would select a third-party administrator to distribute grants to school districts, charter schools, or other eligible entities based on demand and the most innovative solutions.
The administrator, who would be permitted to retain up to five percent of the appropriations each year, must award at least 25 percent of the grants to rural and remote proposals if a sufficient number of qualified remote and rural proposals are submitted.
In another effort to ensure parents understand transportation options, HB2898 included language which now requires a school district to include transportation resource information in its open enrollment policies.
And for non-resident students with disabilities, a district will be required to provide transportation of no more than 30 miles (up from 20 miles) if the students’ individual education program specifies that transportation is necessary.
Meanwhile, school districts will have the option in 2021-2022 to provide transportation for nonresident students up to 30 miles if the student is deemed eligible for the Free or Reduced Price Lunch program. The current limit is 20 miles.
The school transportation legislation was signed by Ducey as districts across Arizona ramp up efforts to recruit drivers for the new school year. Some districts have reported needing to hire several dozen drivers, many who will be assigned to rural routes which often have only a handful of student riders.
They’re still trying to scare us. Apparently, some people in our country just don’t like seeing businesses reopen, people unmasked, and a return to normalcy. So, as the threat to COVID largely dwindles, it should come as no surprise that the media is now pushing a new threat: the Delta variant.
It will be interesting to see how state and local governments across the country respond to this so-called “latest threat.” As you’ll recall, it didn’t go so well the first time around with most seizing the opportunity to abuse emergency powers, even here in Arizona. And although Arizona’s COVID response puts it ahead of most other states in the country, there’s still work to be done.
Thankfully, our state lawmakers haven’t ignored the problem. And with various provisions in a series of Budget Reconciliation Bills, they have taken important steps to protect Arizona from more COVID mandates and government overreach.
On Thursday, the National Federation of Independent Business released its monthly Jobs Report, which found that Arizona is well-positioned to beat its neighbors to full economic recovery.
“Early legislative action this year to enact COVID-19 liability protection for businesses followed by recently adopted, historic tax reforms for income and property taxpayers will feed the flames of optimism and build confidence in business owners–leading to more investment, hiring and growth of small businesses in Arizona,” said Chad Heinrich, Arizona state director for National Federation of Independent Business (NFIB). “While small-business owners remain in a struggle to fill open jobs, in Arizona our small businesses are seeing the support that comes from having a pro-small-business Legislature as our elected officials wrap up business at the State Capitol.”
According to NFIB’s report, 46% of small business owners reported job openings they could not fill in the current period, down two points from May but still above the 48-year historical average of 22%. Small business owners continue to struggle to find qualified workers for their open positions while raising compensation at a record high level.
A net 39% (seasonally adjusted) of owners reported raising compensation (up five points), a record high. A net 26% plan to raise compensation in the next three months (up four points), according to the report.
“In the busy summer season, many firms haven’t been able to hire enough workers to efficiently run their businesses, which has restricted sales and output,” said NFIB Chief Economist Bill Dunkelberg. “In June, we saw a record high percent of owners raising compensation to help attract needed employees and job creation plans also remain at record highs. Owners are doing everything they can to get back to a full, productive staff.”
According to NFIB, “the Jobs Report is a national snapshot not broken down by state. The results were based on 592 respondents to the June survey of a random sample of NFIB’s member firms, surveyed through 6/28/2021.”
