Proton VPN AG was a wholly owned (100%) subsidiary of Proton AG (“Proton”), the company behind Proton Mail and Proton VPN.
When we launched Proton VPN in 2017, it was legally prudent for it to be designated as a separate entity so the two products could benefit from different treatment under Swiss telecommunications laws and each get the most favorable legal status possible. However, in 2018, the Swiss administrative authority later ruled that Proton AG and Proton VPN AG are to be treated as the same entity for the purposes of telecommunications laws. As a result, the continued legal separation no longer provides any advantages, while incurring significant additional administrative costs.
Furthermore, as an organization that serves the public benefit and is promoting economic growth within Switzerland, Proton AG benefits from a special tax treatment in Geneva, Switzerland, and it was therefore also beneficial for all of Proton to be consolidated under Proton AG.
As an organization, we value transparency above all, and we believe that this simplified structure also makes it easier for us to be transparent with the community in the future and avoid confusion about the relationship between various Proton services.