A coalition of tech companies are forming a coalition
to fight Apple and "protect the app economy."
What's the issue: Tech companies that depend on downloads from the App Store for their business model hate that Apple takes a 30% cut on any in-app transactions while also forbidding companies from sending customers outside their app to complete transactions.
Who's in the coalition: Major tech names like Spotify, Epic Games, and Match Group (which owns Tinder and Hinge).
What do they say: The coalition argues that Apple's 30% transaction fee amounts to an unfair tax and that Apple is abusing its dominant position in the market to undermine competition and stifle innovation.
What does Apple say: Apple argues its fee is standard across online marketplaces and that it merely provides a platform for apps that companies can choose to opt-out of if they don't like the terms.
What's next: With 13 initial members in the coalition including major companies like Spotify, Apple's opponents have assembled some real leverage. It would be difficult for the company to boot apps like Tinder, Hinge, and Spotify off its platform without inflicing serious damage on itself.
And don't forget... Governments are increasingly looking at using anti-trust laws to regulate big tech companies. The coalition's arguments are carefully constructed to align with the emerging anti-trust case against companies like Apple.