Proton Lawsuit Challenges Apple’s Control Over iPhone Apps and Payment Systems

Apple is facing new legal challenges from the Swiss privacy technology company, Proton. The company has filed a federal antitrust lawsuit in California, accusing Apple of maintaining an unlawful monopoly over app distribution and payment processing. This proposed class action, filed in Oakland, argues that Apple compels developers to exclusively use its App Store for app distribution while imposing mandatory payment processing and charging up to 30% in commissions.

Proton’s 73-page complaint details a systematic strategy employed by Apple to create barriers for consumers and developers. It alleges that Apple has designed iOS in ways that prevent the existence of competing app stores, effectively locking in users. The lawsuit claims that Apple leverages contracts, updates, and technical limitations to thwart alternative app distribution options and maintains exclusive control over in-app payments.

Proton, known for its privacy-focused software services like Proton Mail and Proton VPN, contends that its offerings directly compete with Apple’s products. The lawsuit highlights how Apple’s App Store policies hinder Proton’s competitive ability, citing delays in app approvals and excessive fees that diminish profits. The company argues that developers have no alternative means of reaching iOS users due to Apple’s stringent requirements.

The ongoing lawsuit is part of a broader wave of scrutiny surrounding Apple’s App Store policies. Proton’s complaints echo the concerns raised by the U.S. Justice Department and state attorneys general, who have accused Apple of monopolizing the smartphone market. Additionally, regulators in Europe and Asia have initiated investigations and taken actions against Apple for similar reasons.

Proton’s lawsuit, numbered 4:25-cv-05450 in the Northern District of California, seeks an injunction that would force Apple to open iOS to rival app stores and payment services. The company aims to restore competition, reduce prices, and enhance user choice while addressing what it sees as stifled innovation.