Proton, the Privacy-Focused App Developer, Sues Apple Over Alleged Anticompetitive Practices and Fees

Proton, a privacy-focused software provider known for services like Proton Mail, Proton Calendar, and Proton Drive, has initiated legal action against Apple, alleging anticompetitive practices in the App Store. The lawsuit claims that Apple monopolizes the smartphone market and app distribution and payment processing sectors, comparing Apple’s fees to tariffs on digital commerce, labeling them as “artificial and arbitrary.”

The suit seeks reforms to the App Store and monetary compensation, which Proton plans to contribute to groups that advocate for democracy and human rights.

Filed in the Northern District of California, this legal action is part of a more extensive class-action lawsuit against Apple. Proton mentions that it is working in conjunction with other developers, including a coalition of Korean developers, who are also taking legal steps against the tech giant.

This lawsuit is part of an increasing wave of challenges to Apple’s stronghold in the mobile app industry.

It follows an extended legal dispute between Epic Games and Apple, which concluded with Apple largely prevailing, being classified as not a monopoly, thereby setting a precedent for the current lawsuit to contest. Nonetheless, in that case, the judge mandated that Apple must permit U.S. app developers to link to their websites offering alternative payment options without charging a commission on those sales. (Apple is appealing this ruling.)

Proton’s approach brings a new outlook. It references the Epic case, arguing that the significant profits Apple generates from App Store fees raise questions about the necessity of these fees for operating the App Store, as Apple claims.

Moreover, Proton questions Apple’s payment policies. The lawsuit points out that Apple prevents developers from communicating directly with their users within the app about web-based discounts. It also mentions that apps failing to comply with Apple’s payment system face removal from the App Store.

The payment issues reveal further intricacies in the system, such as challenges in managing payments and subscriptions across devices due to Apple’s restrictions. For instance, the company highlighted in a blog post that users who upgrade their accounts online are unable to downgrade through their iOS devices, resulting in a poor user experience.

Proton also argues that its Calendar app cannot be set as the default, even though iOS allows users to change defaults for other application types like browsers, email, phone calls, and messaging. Additionally, it notes that Proton Drive is constrained in background processing, unlike iCloud.

Crucially, Proton underscores that Apple’s App Store, as a singular distribution platform, is exploited by authoritarian regimes worldwide to suppress free speech. It cites the numerous apps Apple has to remove to comply with regulations in countries like Russia and China, which adversely affects iOS developers. For example, Proton’s VPN app faced removal threats for reportedly “unblocking censored websites.”

“Apple’s monopolistic control over software distribution on iOS devices poses various challenges for consumers, businesses, and society as a whole,” Proton’s statement reads. “Antitrust laws exist because monopoly power often leads to abuses. In the context of oligopolistic tech giants, these abuses carry significant societal implications, making it essential to address them now for the future of the internet.”

We contacted Apple for a statement but have yet to receive a response.