The Department of Justice’s recent antitrust lawsuit against Apple – joined by 16 state attorneys general, including Tennessee’s Attorney General Jonathan Skrmetti – is a crucial step toward fostering fair competition and protecting small businesses in the digital marketplace.
As the founder of Agrin Health, a Tennessee-based health care technology startup, I wholeheartedly support this legal action and commend Attorney General Skrmetti for standing up for local entrepreneurs and the consumers we serve.
Like many Tennesseans, I’ve cared for loved ones and experienced the frustration of dealing with fragmented health information spread across multiple providers, insurers, and apps.
This personal struggle inspired me to create Agrin Health, with the mission of empowering families to take charge of their health journey.
Here is our experience with the Apple App Store
Our team of health care and technology experts developed a comprehensive Personal Health Management (PHM) platform that serves as a centralized hub for managing health and wellness information, gaining insights, and accessing needed health care services.
Today we offer the only totally portable, intelligent, consumer-directed health care platform on the market, but it was almost taken from our customers due to anticompetitive App Store practices.
After approving our app for the App Store, 18 months later Apple discovered we had paid services listed on our website, which were separate and distinct from our free app. Apple declared we could no longer update our iOS app unless we moved our paid functionality into the mobile app and charged our customers through Apple Payments – so they could skim 30% in addition to finance charges.
Our app, and our mission, was at the mercy of Apple unless our young company came up with hundreds of thousands of dollars to reconfigure our service delivery — and we are not alone. Fortunately, we were able to modify our business model, making all of our consumer services free, but our story of survival is an unusual one.
Small businesses can’t fight Big Tech on their own
Apple’s iron grip on the App Store has long hampered small businesses like mine. The tech giant’s practices not only stifle innovation but also directly impact our ability to serve our customers effectively and affordably. Apple’s restrictive policies and exorbitant fees significantly hinder our growth and limit the benefits we can offer to our users.
Federal intervention, like this DOJ lawsuit, is critical because small businesses don’t have the resources to stand up to tech giants alone. Mom-and-pop operations and startups like Agrin Health can’t possibly match the legal and financial might of a company like Apple, especially when that very company has access to our source code (intellectual property) and the power to snuff out our businesses through its control of the App Store.
The 30% commission Apple charges on most App Store purchases – both purchases in the store and in apps – is particularly burdensome for small businesses operating on tight margins. This “App Tax” forces us to either raise prices for our customers or absorb the cost ourselves, limiting our ability to invest in research and development or expand our services, which are critical to competing in the market.
Equally concerning is Apple’s practice of self-preferencing, where the company gives preferential treatment to its own apps and services within the App Store. This creates an inherently unfair competitive landscape where Apple’s offerings are prominently featured and often pre-installed, while third-party apps like ours struggle for visibility and user acquisition. For a healthcare app like ours, where affordability and accessibility are crucial for widespread adoption and impact, these practices present a significant barrier to achieving our mission of improving public health in Tennessee and the country.
More:What is a monopoly? Why the Justice Department sued Apple, ruled against Google
Attorney General Jonathan Skrmetti should be commended
The potential outcomes of this lawsuit could be transformative for small businesses across the nation – and they prove why federal intervention on behalf of small businesses and consumers is necessary. If Apple is successfully held accountable, companies like Agrin Health will be able reach customers more efficiently and offer more innovative, affordable solutions. Who benefits most from this competition? Local small businesses, which drive our economy, and consumers who rely on the services these companies provide. In our case, increased competition would not only benefit our business but also improve healthcare access and outcomes for Tennesseans who rely on mobile health technologies.
I applaud the Department of Justice and Attorney General Skrmetti for taking this bold stand against Apple’s monopolistic practices. This lawsuit represents hope for small businesses like Agrin Health and the consumers we serve. It’s a fight for fairness, innovation, and the future of our digital economy. As Tennesseans and Americans, we should all support efforts to level the playing field and ensure that the benefits of technology are shared equitably across our society.
Karen Thomas is the CEO of Agrin Health. The author is based in Nashville.
