Encrypted Messaging App Telegram Files Antitrust Complaint Against Apple With EU

Ruben Fields
July 30, 2020

Apple typically charges a 30pc cut of all subscriptions made in the first year of an app being available in its App Store, a fee which has frustrated app developers in recent years. Apple does not offer services that compete with either Airbnb or ClassPass, however.

The CEOs of the 4 tech giants will seem in advance of Property Judiciary's Antitrust subcommittee on Wednesday as portion of an investigation into its electricity and impact on the tech sector. Furthermore, "the only apps that are subject to a commission are those where the developer acquires a customer on an Apple device and where the features or services would be experienced and consumed on an Apple device", the statement continues.

The EU also opened an antitrust investigation of its own into Apple's App Store and Apple Pay policies earlier this year. Critically, he says that while Apple believes regulatory scrutiny is reasonable, the company will "make no concession on the facts", and disputes the characterization that Apple is anti-competitive.

ClassPass built its business on helping people book exercise classes at local gyms. It reportedly paid no fee to Apple previously but was asked to pay 30 percent after its classes became virtual. According to the NYT, ClassPass was told it had until the end of the month to start paying the fee, but Apple said it had until the end of the year to comply. Airbnb began moving into this area in 2016 by offering Experiences.

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In the remarks, Cook says that the "vast majority of apps on the App Store" provide their developers with a 100% revenue share, and Apple's 15% to 30% cut beat the boxed software industry and is competitive with alternatives. The New York Times reports that Airbnb is still in negotiations with Apple.

Regarding concerns that Apple takes too large a commission from developers who sell through the App Store, Cook says that the store was launched in 2008 to mimic a high-end department store with a carefully curated selection of products.

Cook's opening assertion defended Apple, asserting that the enterprise "does not have a dominant current market share in any sector where by we do business". It said that its app guidelines date back to 2010.

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