Media entrepreneur Alexander Klöpping wants to file a billion-dollar claim with a new foundation against Google and Apple, because those companies would collect too much commission from the sale of apps.
Apple charges a 30 percent commission when purchasing an app. Google charges a 15 percent commission for small app developers and 30 percent for large companies. The two companies control almost the entire market with their operating systems iOS and Android.
The companies say they use that money to keep the digital store safe, but according to Klöpping, that is “completely unrealistically” charged a lot of money.
Billion claimed
Klöpping’s foundation has calculated how many Dutch consumers have paid to Google and Apple since the existence of the app stores. That would amount to one billion euros. That is why Klöpping wants to submit a claim of one billion euros with the App Stores Claims Foundation.
The media entrepreneur hopes that consumers will join his foundation. “If enough people do that and the judge thinks we can speak in front of a large group, then we can file the claim on behalf of all Dutch people,” says Klöpping. If the judge then rules in favor of the foundation, all Dutch consumers will have to be compensated.
too powerful
Klöpping, previously owner of the digital newspaper kiosk Blendle, says he has been angry about the mandatory commission for a long time. “For example, if you buy a washing machine on a site or app with iDeal, you only have to pay a few cents for a transaction. But as soon as you buy something digital, such as a game or meditation app, you have to pay 30 percent ‘tech tax’ .”
Recently, the Netherlands Authority for Consumers and Markets ruled that Apple may no longer refuse the iDeal payment method in the case of dating apps, which only charges a 3 percent commission. Apple made that adjustment, after which the tech company itself set a 27 percent commission. As a result, the Dutch consumer still has to pay the same amount for a dating app.
According to Klöpping, Google and Apple are guilty of abusing their shared monopoly. “The only reason they can get away with it is because they are too powerful. Governments want to limit the power of these two companies. But so far they don’t care. They go on happily.”