The US Senate Judiciary Committee approved a bill that would allow apps to be installed on the iPhone from any source, not just the App Store.
It will also allow developers to use their own payment systems and not pay a 30% commission on all digital purchases.
Apple and Google have criticized the new law. Apple thinks it will make iOS like Android by limiting consumer choice.
The bill will be sent to the US Senate for a vote. A hearing date has not yet been set.