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Proton takes Apple to court, claims App Store rules allegedly kill competition and innovation

Proton takes Apple to court, claims App Store rules allegedly kill competition and innovation

India Today01-07-2025
Privacy-focused software company Proton has filed a lawsuit against Apple in a US federal court, accusing the tech giant of using its control over the App Store to stifle competition and innovation, according to a report by Reuters. Filed in Oakland, California, the proposed class action alleges that Apple has an illegal monopoly over how apps are distributed and monetised on iPhones. Proton, best known for its secure email service Proton Mail, reportedly said that Apple's strict rules and high commissions are hurting developers and consumers alike.advertisementThe Swiss company claimed that Apple forces developers to use its payment system and takes a 30 per cent cut on most transactions. 'We sued Apple to set an important precedent that free people, not monopolies, will dictate the future of the internet,' Proton said in a statement posted in an official blog.Proton is not alone in taking Apple to court. Its case builds on a similar lawsuit filed in May by the Korean Publishers Association and other plaintiffs. While that case focused on broader antitrust concerns, Proton's suit aims to push the court to order Apple to allow competing app stores and alternative payment systems on its iOS platform.
Apple has not yet responded to Proton's claims, and the company typically defends its App Store policies as a way to protect users and ensure app quality. However, its practices have drawn increasing scrutiny from regulators and developers in recent years.advertisementIn March, Apple was fined 500 million (around 5,007 crore) by EU antitrust regulators for restricting developers from telling users about cheaper alternatives outside the App Store. Under pressure from the EU's new Digital Markets Act (DMA), Apple has since agreed to loosen some rules, at least in Europe.Reportedly, Apple now allows EU developers to include multiple links in their apps to direct users to external payment platforms. However, Apple still charges a fee ranging from 5 per cent to 15 per cent for such transactions, depending on the developer's size and service used. Developers who stick with Apple's in-app purchase system continue to pay up to 20 per cent, though smaller developers pay as little as 13 per cent.Despite these changes, critics say Apple's compliance with the DMA is only partial. Tim Sweeney, CEO of Epic Games, which sued Apple in 2020, described the App Store changes in the EU as 'a mockery of fair competition.' Sweeney accused Apple of punishing developers who use third-party payment systems by limiting their app features and making the user experience worse.In April this year, a US judge ruled in favour of Epic, finding that Apple had wilfully violated a 2021 court order meant to open the App Store to more competition. The judge said Apple's insistence on charging a 27 per cent fee for external purchases was more about maintaining profits than protecting users. The case has now been referred to federal prosecutors to examine whether Apple's actions warrant criminal contempt. Apple has said it will appeal. - Ends
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