Apple Gets United Coalition Pushback on $15 Billion App Store Biz

(Image credit: Apple)

A group of digital companies, a list highlighted by Spotify, Epic Games and Tile, has united to push back against the policies of the Apple App Store. 

The Coalition for App Fairness is a new non-profit org dedicated to curtailing what its members see as Apple’s abusive behavior toward both content creator/distributors and consumers. 

The group claims that Apple makes $15 billion a year charging 30% commissions on in-app purchases, a rate that it says is outrageously high relative to the maximum of 5% charged by payment services. 

Also read: Apple and Google App Store Hegemony Challenged by 'Fortnite' Maker Epic Games

On its website, the coalition says it’s pushing back in three areas:

App Store Policies: “Apple uses its control of the iOS operating system to favor itself by controlling the products and features that are available to consumers,” the group said. “The company requires equipment manufacturers to limit options, forces developers to sell through its App Store, and even steals ideas from competitors.

The 30% “App Tax” on creators and consumers: "For most purchases made within the App Store, Apple takes 30% of the purchase price. No other transaction fee in any industry comes close. This app tax cuts deeply into consumer purchasing power and developer revenue. This app tax is especially unfair when it is imposed on apps that compete directly with those sold by Apple, driving up their prices and putting them at a distinct competitive advantage.

Consumer freedom: If consumers want to use a modern mobile device, Apple levies a tax that no one can avoid. No competition, no options, no recourse. The Apple App Store policies are prisons that consumers are required to pay for and that developers cannot escape.

The founding members also include: Basecam Blix, Blockchain, Deezer, the European Publishers Council, Match, News Media Europe, Prepear, ProtonMail and SkyDemon.

Apple, which went to court with Epic Games last month to defend its app store policies, sees things differently. It views its App Store as much more of a payment service, also hosting apps and marketing them. 

Daniel Frankel

Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!