By Andy Yen, Founder and CEO of Proton Technologies AG, which provides encrypted webmail services ProtonMail and ProtonVPN VPN. He received a degree in particle physics from Harvard, and for some time worked as a researcher at CERN.
Last week, the European Commission reacted to a complaint from Spotify by announcing an investigation into Apple's App Store practices that may violate EU competition laws. We at Proton applaud this decision and the courage of Spotify to raise the issue.
Apple has advertised itself as a user-centered company for a year, but now it increasingly works with dictatorships to curtail digital freedom. There was a time when Apple positioned itself as a rebellious alternative to giants like Microsoft. Today Apple has become a monopoly, crushing potential competitors with exploitative extortions, and censoring at the behest of dictators.
American tech giants have long been pressured to stifle dissent and competition in order to maintain market dominance. We know this insofar as we have endured this exploitation for years. And, like many others, we did not dare to speak out for a long time, fearing that these tech giants could abuse their dominant position, destroying all who dare to stand in their way.
However, we believe that our conscience does not allow us to remain silent any longer. Recent antitrust investigations launched against Apple in the US and Europe confirm our position. We have concluded that Apple has created a dangerous new normality that allows it to abuse its monopoly position by imposing extortionate commissions and censorship that stifles technological advancement, creative freedom, and human rights. Worse, it has set a precedent that inspires other tech monopolies to do similar abuses.
Apple holds us all hostage through its monopoly position
Apple iOS controls 25% of the global smartphone market (the remaining 75% is largely controlled by Google Android). It turns out that for more than a billion people (and especially for residents of the United States, where Apple's market share is close to 50%), the App Store is the only way to install applications. This gives Apple incredible leverage over how software is created and consumed around the world.
Perhaps the most painful expression of this power is the exorbitant 30% tax on developers, which is now being considered in antitrust investigations in the US and the European Union. This is obviously an extremely high commission, and under normal market conditions, no one would tolerate it - but it especially hurts those who are trying to offer a product that competes with Apple. It is very difficult to compete if you are being forced to pay your competitor 30% of all your profits.
Apple tries to justify such commissions by arguing that the App Store is no different from a mall, where companies trying to offer their products must pay rent to the mall owner (in this case, Apple). In making this argument, the company conveniently omits the fact that in the case of iOS, there is only one shopping center, and there is no possibility to rent premises from another competing shopping center. Apple does not break the law by owning a mall and leasing premises, or owning a single mall. It is illegal only to exploit the fact of having a single shopping center, charging excessive fees that harm competitors.
This situation is practically no different from racketeering. Developers are required to pay this fee if they want to stay in this business. And this commission ultimately hurts consumers, because it is indirectly shifted onto their shoulders - either through high prices or through fewer products competing in the market.
After the European Commission launched its investigation on June 16, Apple released a statement saying that "The European Commission is making groundless complaints from a handful of companies just wanting a freebie."
This comment demonstrates the callousness with which Apple has expropriated and stifled creativity that once flourished on the Internet. If few companies (Spotify, for example) have complained about this situation, it is because Apple's dominance in the market prevents small companies from arguing. Here, either obey, or you will be removed from the App Store without the possibility of an appeal.
Apple has already gone so far as to remove apps from the App Store if they refuse to offer users to buy in-app features that can be purchased elsewhere. In other words, Apple wants to get a third of all your sales, whether you want to sell your product on their platform or not. This is exactly what happened with Proton.
On the example of the trials of the mafia, we know that the absence of witnesses willing to testify does not mean that there was no crime - it only emphasizes the power of the accused. Today we want to give evidence that refutes Apple's claims that only “a handful of companies” are protesting against their practices.
Apple Helps Promote Authoritarianism Worldwide
If it is wrong and illegal to use dominance in the market to eliminate competitors, then using it to suppress digital freedom is simply unethical. Long ago, someone should have blamed Apple for this behavior. We, as direct witnesses of this behavior, can share our story.
In January 2020, ProtonVPN released a description update for its iOS app in the App Store. The new description highlighted the capabilities of ProtonVPN, in particular its ability to "unblock censored websites."
Although ProtonVPN has been in the AC since 2018, and the basic functionality of our VPN has not changed, Apple suddenly refused to publish a new version of the application, threatening to remove it from the AC altogether. They demanded that we remove references to censorship from the description on the grounds that in some countries freedom of speech is severely restricted. Either we obeyed, or we were removed from the AU. Most troubling is the fact that Apple has demanded to remove references to censorship from the languages of all countries where our application is available - in fact, obeying the demands of authoritarian governments, and even affecting those countries where free speech is protected.
Indeed, in some countries, such as China, South Sudan and Saudi Arabia, freedom of expression is indeed severely restricted, and thousands of activists have been killed or thrown in jail for trying to express their opinions. However, by yielding to tyrants and bringing everything to the lowest common denominator, Apple ignores internationally recognized human rights and stops progress that we all enjoy and for which activists have paid with their lives.
Internet censorship is one of the greatest threats to democracy and freedom in the 21st century, and in this sense, a VPN is one of the best tools that can give people access to independent sources of accurate information. The free flow of ideas - and the right to confidentiality of your ideas - is one of the fundamental principles of democracy.
And, apparently, Apple no longer believes in this principle. For example, Apple is subject to Chinese laws that prohibit users from accessing thousands of applications, requiring foreign companies to store local citizens' data within the country and provide access to local authorities. Even Google is more resistant to pressure from China.
We find it unacceptable that Apple uses its dominant market position to persuade other companies to engage in human rights abuses that might otherwise oppose it. And these attempts are beyond our ability to fight censorship with our application.
In China, Apple has censored platforms such as The New York Times and Bloomberg News, and in Hong Kong it has blocked access to the HKMaps app that supported local democratic protests . She also agreed to remove dozens of apps and podcasts that China believes violate local censorship laws.
As part of our mission to bring privacy and digital freedom to everyone, we developed ProtonVPN, the world's first free and unlimited VPN service that does not track user activity. We are at the forefront of the worldwide struggle for freedom, and recently ranked thirdin the ranking of the Hong Kong App Store during local protests. By censoring ProtonVPN's descriptions to obey the demands of authoritarian governments, Apple is making it increasingly difficult for people to exercise their fundamental rights, and also makes it clear that profit is more important to it than people.
With great power (and profit) comes great responsibility
Although the company tries to portray itself as a human rights activist, the number of cases where Apple has defended these rights has steadily decreased in recent years. The level of compromises she agrees to make surprises even her investors - an increasing number of shareholders are demanding that the company respect basic human rights.
Apple reported record revenues of $ 55 billion last year, making it the world's most profitable tech company. We don't mind Apple making money, and they have the right to maximize profits. However, like any company, Apple must also obey the laws, including competition laws, and in this sense we support and endorse the EU's attempt to get Apple to respond.
We also believe that tech companies, especially those making $ 55 billion, have at least a moral obligation to uphold human rights, even if they cannot be compelled to do so by law. However, we, the consumers, can make it. By choosing whom to give our money to, we make it clear what exactly we consider the minimum acceptable level of moral responsibility.
We hope that by defining our position today, we will inspire others to speak up and do everything to create a more just, free and objective society. If you are also a victim of Apple abuse, please write to us at legal@protonmail.com.