Joining an increasing number of developers who are contesting Apple’s dominance over the distribution and payment processing of iPhone apps, the Swiss privacy technology startup Proton launched an antitrust complaint against the tech giant on Monday. Proton Mail, the company that created the encrypted email service, accused Apple of running unlawful monopolies that hurt developers and customers by charging “artificial and arbitrary” costs.
The action, which comes weeks after a federal judge declared Apple in contempt of court for violating earlier antitrust judgments, is the most recent development in a global dispute over the company’s App Store policies.
‘Surveillance Capitalism’ At Apple Targeted By Privacy Firm
According to Proton’s case, which was submitted to a federal court in California, Apple’s App Store fees hurt smaller privacy-focused businesses while promoting a “surveillance capitalism business model” that is employed by corporations such as Meta and Google. The business contends that while firms that charge for privacy protection are required to provide Apple up to 30% of their sales, free apps that abuse user data are exempt from Apple’s costs.
Proton said that Apple may “get away with behavior in the US that is already outlawed in the European Union” if legal action was not taken. “Apple’s conduct, as detailed in the complaint we filed, constitutes further violations of US antitrust law,” Proton said.
In May, Korean developers filed a class-action lawsuit in which the Swiss business is now a party. The case seeks monetary damages and policy changes, with Proton agreeing to give the money to human rights and democracy organizations.
New legal challenges are fueled by recent court defeats.
Apple’s growing legal issues are reflected in the timing. Apple was found in “willful violation” of U.S. District Judge Yvonne Gonzalez Rogers’ 2021 order in April, which required the corporation to permit developers to refer consumers to other payment methods. Because of how punitive the judge’s decision was, Apple was submitted to federal prosecutors for possible criminal prosecution.
Developers have already filed another class-action lawsuit in response to that contempt finding, claiming they lost billions of dollars in income. Apple is contesting the court ruling that compelled the corporation to update its U.S. App Store policy in May.
Regulatory Pressure Rises Worldwide
Apple is the subject of antitrust investigations in several countries, including Spain, the UK, and others. European regulators have fined the company €1.8 billion. Apple has also being sued by the US Justice Department for allegedly monopolizing the smartphone market.
“The only way to push for tangible changes to Apple’s policies that will benefit developers and American consumers alike” is to join the lawsuit, according to Andy Yen, CEO of Proton.