🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Apple critics form coalition to challenge App Store fees

Published 2020-09-24, 08:03 a/m
© Reuters. FILE PHOTO: The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in New York
AAPL
-
MTCH
-

By Stephen Nellis

SAN FRANCISCO (Reuters) - A group of Apple Inc (NASDAQ:AAPL)'s critics - including Spotify Technoloy SA, Match Group Inc (NASDAQ:MTCH) and "Fortnite" creator Epic Games - have joined a nonprofit group that plans to advocate for legal and regulatory action to challenge the iPhone maker's App Store practices.

Apple charges a commission of between 15%-30% for apps that use its in-app payment system and sets out extensive rules that apps must comply with to appear in its App Store, which is the only way Apple allows consumers to download native apps onto devices such as the iPhone. Those practices have drawn criticism and formal legal complaints from some developers.

The Coalition for App Fairness, structured as a nonprofit based in Washington, D.C. and Brussels, said it plans to advocate legal changes that would force Apple to change. Beyond Epic, Match and Spotify, other members include smaller firms such as Basecamp, Blix, Blockchain.com, Deezer, and Tile, along with developers from Europe including the European Publishers Council, News Media Europe and Protonmail.

Sarah Maxwell, a representative for the group who previously worked at financial technology firm Blockchain.com and Hillary Clinton's campaign, said the group was founded out of "a lack of hope that things will ever change” and aims to recruit more developers.

"While it's great that we have the big names like Epic and Spotify in the group, we're not speaking just for them," she said in a interview.

Epic is suing Apple over antitrust claims in a U.S. federal court in California, while Spotify has filed an antitrust complaint against Apple in the European Union. Maxwell declined to comment on how much funding the Coalition for App Fairness has raised and from whom.

© Reuters. FILE PHOTO: The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in New York

The group on Thursday also laid out 10 "App Store Principles" it plans to demand, including that "No developer should be required to pay unfair, unreasonable or discriminatory fees or revenue shares."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.