ProtonMail Compares Apple to Mafia, Says App Was Forced Into In-App Purchases in 2018

[MacRumors]

Apple's dispute with "HEY" wasn't the first time the Cupertino company tried to force an email app into adding in-app purchases, according to ProtonMail CEO Andy Yen.

Yen told The Verge that back in 2018, ProtonMail was forced to add in-app purchases to its app, which had been in the App Store since 2016. ProtonMail at the time had a paid email service but did not offer it in the app, with the App Store version being available for free.

For the first two years we were in the App Store, that was fine, no issues there," he says. (They'd launched on iOS in 2016.) "But a common practice we see ... as you start getting significant uptake in uploads and downloads, they start looking at your situation more carefully, and then as any good Mafia extortion goes, they come to shake you down for some money.

Apple apparently told ProtonMail "out of the blue" that it was required to add an in-app purchase option to stay in the App Store. Similar to the situations with HEY and Wordpress earlier this year, ProtonMail had a mention of paid plans in the app, which prompted Apple to ask for the same subscription options to be offered via in-app purchase.

Yen says that ProtonMail complied in order to save its business, complaining that there's no way to get a "fair hearing" with Apple. ProtonMail was unable to update the app for a month-long period, and Apple threatened to remove the app from the store if the company did not comply.

They are judge, jury, and executioner on their platform, and you can take it or leave it. You can't get any sort of fair hearing to determine whether it's justifiable or not justifiable, anything they say goes.

When in-app purchases were implemented on iOS, ProtonMail raised the prices for a subscription through Apple by 26 percent to pay for the extra cost as it was unable to pay for the extra 30 percent margin.

Yen believes Apple's 30 percent fee harms privacy-centric apps because it's difficult for a paid app to compete with free apps like Gmail while also having to pay App Store frees.

Apple in September changed its App Store rules to avoid situations like the dispute with ProtonMail. Apps are now allowed to offer free standalone apps that are companions to paid web-based tools without an in-app purchase requirement, and there's also a new process that lets developers challenge App Store rules and decisions.

Following Apple's App Store rule change, Yen told The Verge that ProtonMail plans to remove its in-app purchase options, but he's wary of Apple's new rules and will test out the changes on another app, ProtonDrive, ahead of time. Apple in a statement to The Verge said that it "doesn't retaliate against developers" and instead "works with them to get their apps on the store."

ProtonMail is one of the participants in the "Coalition for App Fairness," a group advocating for "freedom of choice and fair competition across the app ecosystem." Members include other companies disgruntled with Apple's App Store practices, including Spotify, Epic Games, Tile, and Basecamp (the makers of HEY).

Article Link: ProtonMail Compares Apple to Mafia, Says App Was Forced Into In-App Purchases in 2018

 

[AngerDanger]

That’s a bit rich coming from ProtonMail when they’ve apparently been holding the blue iPhone 11 hostage!

 

[londonhogfan]

Do they target some business and not others. For example, I can watch my movies on the VUDU app, but I can't buy them there ( I assume because walmart doesn't want to pay apple their fee ). If they're not careful a judge may side against apple on this.

 

[Psychicbob]

I’m sure Apple will “take care” of ProtonMail! Here’s to a fair hearing anyway!

 

[TheYayAreaLiving 🎗️]

I’m so lost! So what is going to be an outcome for this?

 

[Apple_Robert]

The complaining and whining is meaningless when Yen does what he says he think is unreasonable. If you don’t like what Apple says, then do something different.

These after the fact cry babies are nothing but noise.

 

[justperry]

The complaining and whining is meaningless when Yen does what he says he think is unreasonable. If you don’t like what Apple says, then do something different.

These after the fact cry babies are nothing but noise.

Apple changed the rules, there was no problem for a few years, so calling them cry babies is unfair imo.

For the first two years we were in the App Store, that was fine, no issues there," he says. (They'd launched on iOS in 2016.) "But a common practice we see ... as you start getting significant uptake in uploads and downloads, they start looking at your situation more carefully, and then as any good Mafia extortion goes, they come to shake you down for some money.

 

[Squuiid]

So, Yen wants Apple to provide distribution, promotion, hosting/CDN, dev tools, etc for his app but he wants it all for free, while monetizing the app outside the store?
Ok then, sure, no problem.

 

[kurosov]

Do they target some business and not others. For example, I can watch my movies on the VUDU app, but I can't buy them there ( I assume because walmart doesn't want to pay apple their fee ). If they're not careful a judge may side against apple on this.

Most of the companies that are complaining are doing so because they equally apply the rule and therefore won't give them a special deal other companies don't get.

 

[Metrosey]

I’m so lost! So what is going to be an outcome for this?

There's more likely to be action against Apple in the EU/UK/AUS than America. However, I'd hope everywhere takes action too be honest.

 

[Hurmoth]

I thoroughly enjoy using Apple products, but I'm not beholden enough to any one tech company that I cannot see when they're in the wrong. Just like the Apple/Epic case, both sides are wrong for their actions.

Less fanboys and more level-headed thinkers is what we need in the world.

 

[BootsWalking]

Most of the companies that are complaining are doing so because they equally apply the rule and therefore won't give them a special deal other companies don't get.

Was Google ever forced to put In-App purchases into gmail?

 

[I7guy]

They knew the rules. If you can't stand the heat get out of the kitchen.

 

[69Mustang]

The complaining and whining is meaningless when Yen does what he says he think is unreasonable. If you don’t like what Apple says, then do something different.

These after the fact cry babies are nothing but noise.

You either didn't read the article or didn't understand what you read. Apple has changed it's stance requiring IAP in the apps, so it's seems there was a bit more there than nothing but noise.

 

[BeABetterApple]

This is why Apple shields its monopoly of its own App Store. Of course Apple’s growth during many quarters is tied directly to the App Store and AirPods/wearables.

As a purchaser of Apple products, I think I should have the choice to use the Apple App Store or a third-party vendor. As an AAPL shareholder, I don’t want anyone to have that choice. It would poorly impact performance and profits.

This is the basis of what’s wrong. People that don’t see that choices are what make free enterprise, and only want to defend Apple aren’t seeing the big picture.

Now personally, I don’t want to be told I cannot put something on my iPhone, but at the same time even when third party app stores exist, and they will, I will stick with Apple. I also think 90% will stick with Apple. But some people can do fine switching to another App Store. I don’t install Instagram or Facebook or any of these other absurd apps that take advantage of the situation and use my camera, sort through my photos and do whatever they want. Apple is the only one that had my back there.

Finally, I think Apple should prepare now for the inevitable outcome that it will lose its monopoly of an App Store. When that day happens, I don’t think Apple should any longer have to support an iPhone under warranty or expect to take care of a person’s privacy for them any longer.

So our choice should be, use Apple App Store only if we want to ensure the greatest privacy and functionality/performance of our iPhones, or choose an alternate third-party app provider who will most likely use everything within their power to track everything we do with no oversight from Apple. It’s like the Wild West running Windows versus running MacOS.

At the end of the day, we all deserve a choice. And these app providers who feel like they have been wronged, should have an alternate place to load their apps. But if they don’t have them in the official Apple App Store, they should prepare to lose a lot of business.

My two cents are Apple executives want those huge $100m paydays annually. The only way to do that is to keep creating unique products and services or run a monopoly. For years now, Tim Cook’s team has chosen to run a monopoly and act like thugs with all the power. To the victors go the spoils. At some point it ends, and competition should win out. But most of us will probably stick with Apple due to that sense of security. Even if it’s not really there, Apple seems the only company that even tries to ensure our privacy and safety online.

 

[Apple_Robert]

Apple changed the rules, there was no problem for a few years, so calling them cry babies is unfair imo.

Yen sold his soul to supposedly save his business and now he is complaining about Apple after he sold his soul. Yen, and people who do what he did can go pound sand, as far as I am concerned.

Either you stand with integrity, or you admit you principles were nothing more than money based preferences. Sellouts are pathetic, in my opinion. And Yen is a sellout complaining after the fact.

 

[I7guy]

I thoroughly enjoy using Apple products, but I'm not beholden enough to any one tech company that I cannot see when they're in the wrong. Just like the Apple/Epic case, both sides are wrong for their actions.

Less fanboys and more level-headed thinkers is what we need in the world.

There is no objective right or wrong here, only a mish-mosh of opinions.

According to this post it's the critics vs the fanboys and my opinion is right, whilst your opinion is wrong.

We do need more level headed thinkers, but that may not turn out the way you seem to be implying.

 

[ppetrovic]

Hurry up with the regulation!

So, Yen wants Apple to provide distribution, promotion, hosting/CDN, dev tools, etc for his app but he wants it all for free, while monetizing the app outside the store?

No, Yen (and hundreds of thousands of other app developers) are paying $99 per year for the privilege of being able to put apps on the App Store. Also, hosting and CDN costs these days are dirt cheap, even when you're pushing petabytes of bandwidth every month like Apple certainly does, because at that point you're eligible for volume pricing. Trust me, I work in the hosting/CDN business.

 

[Apple_Robert]

You either didn't read the article or didn't understand what you read. Apple has changed it's stance requiring IAP in the apps, so it's seems there was a bit more there than nothing but noise.

I read the article completely and I did fully understand.

If Yen didn’t like Apple’s new terms, he shouldn’t have proceeded. Like I said, noise.

 

[davidjearly]

So, leave the App Store? It’s Apple’s damn platform and if you don’t want to abide by the rules but rather just reap the benefits, leave.

Easy.

 

[Future Dwight]

Mafia? Really? The mafia will go in your business and force you to pay. Developers are on Apple's land. Get out of their property if you don't like their rules.

 

[69Mustang]

So, Yen wants Apple to provide distribution, promotion, hosting/CDN, dev tools, etc for his app but he wants it all for free, while monetizing the app outside the store?
Ok then, sure, no problem.

Everything you mentioned is covered by the dev fee, so it ain't all free. According to Yen, Apple was fine with the relationship until Proton Mail gained some notoriety and then came looking to cash in. Now how accurate is Yen's version? Idk, and Apple hasn't said anything one way or the other. They did change their policy. Read into that what you will. Regardless, your description of the situation remains inaccurate.

 

[now i see it]

The App Store monopoly will come a tumblin down. Congress will see to it.

My question is: Why would anyone in their right mind want to get in bed with Apple in the first place? Have your livelihood dependent on their iron fisted whims and fancies?

 

[sw1tcher]

So, Yen wants Apple to provide distribution, promotion, hosting/CDN, dev tools, etc for his app but he wants it all for free, while monetizing the app outside the store?
Ok then, sure, no problem.

Apple doesn't seem to have a problem with Netflix, Amazon, Uber, et al monetizing their app outside of the app store unless Apple is getting a 30% cut of each Amazon, Uber, etc transaction that I'm not aware of.

 

[GadgetBen]

It’s definitely an issue if Apple think they can force companies who make money outside of the App Store to cut them a piece of the pie.