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Proton Plans To Drop Prices 30% on Its Privacy Apps, Thanks to Ruling Against the ‘Apple Tax’

Proton makes one of our favorite VPNs, as well as a killer password manager and secure email service. Now, it pledges to be cheaper.

The Apple Tax. It’s what pissed-off app developers have been calling the 27-30% cut that Apple takes from revenue that apps generate from users who purchase or subscribe through Apple’s App Store.

Developers have been complaining for years about the Apple Tax, arguing that Apple strong-arms consumers into purchasing through the App Store and not from third-party sites, where they wouldn’t get their cut.

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Back in 2020, Epic Games sued Apple over the 27-30% take, particularly irate over sharing that much profit of its wildly popular game, Fortnite.

When Judge Yvonne Gonzalez Rogers ruled in 2021 that Apple had to give developers more of a chance to direct would-be buyers to purchasing options through avenues other than the App Store, the app world celebrated. But it seemed premature.

On April 30, Gonzalez Rogers ruled that Apple violated her order by not doing enough to halt anti-competitive pricing measures. Apple listened up this time and nixed the 27-30% take.

winning a long-term goal for developers

Proton’s CEO, Andy Yen, took no time to waste in celebrating the ruling publicly on X.

“Worth noting, this court ruling is one of the most effective way (sic) to cut inflation in the US, by dropping the price of a significant chunk of digital purchases by 30% overnight…” Yen wrote in a reply to an X user within the same post.

When a user expressed skepticism that many companies would use the nullification of Apple’s 30% “Apple Tax” to drop prices a full 30%, Yen replied, “It’s about choice. Apple can charge whatever fee they want for their payment system. But we are now free to offer an alternative option that is up to 30% cheaper. For the first time, the user can decide for themselves (pay Apple 30%, or save 30%).”

To be honest, I share the user’s skepticism. Companies, whether they sell boxes of cereal or electronic parts for cell phones, aren’t known for dropping prices when the costs of doing business drop.

Just look at shrinkflation on the grocery store shelves. The shrinking size of food and drink containers when inflation rises is rarely reversed once inflation is brought to heel and the economy improves. By then, the customer is used to the price increase, and the company doesn’t usually want to cut into its profit margin.

I’m also on board with Yen’s celebration that it opens up developers’ choice, though. New developers can price the 27-30% reduction into their business plans. We have no word yet on when Proton plans to drop its prices, and I hope that by going public that they plan to drop them the full 30% means they’ll stick to it.

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