As many of you know, Apple requires in-app payments for App Store transactions to be made using Apple’s proprietary in-app payment platform, which allows the company to reduce 15% to 30% of the transaction value. Third party and alternative payment platforms are not allowed and any developer providing links to alternative payment options will be removed from the App Store.
Apple demands fines in the Netherlands totaling $ 52.58 million
That’s what happened last year when mobile game developer Epic tried to promote its own payment platform for its popular Fortnite game, which would have resulted in players paying less for in-game currency. Apple responded by kicking Epic and the Fortnite game from the App Store. And in the Netherlands, the fact that Apple did not allow consumers to pay for dating apps with alternative payment methods led to Apple being fined weekly.
Epic offered its own in-app payment platform for Fortnite users so they could bypass Apple’s discount on in-app payments
Apple claimed it met the requirements of the Dutch watchdog and would not be fined. However, the tech giant’s solution was to force Dutch dating app developers to release separate versions of their apps for the US and the Netherlands. For example, Apple can continue to collect a 15% to 30% discount on dating apps installed by its customers in the United States, while customers in the Netherlands can pay via an alternative payment platform.
The ACM states that this solution creates an “unnecessary barrier”. On the other hand, Apple said its plan “will meet its legal obligations in the Netherlands, while also being able to maintain its standard terms in the rest of the world.”
The statement continues: “According to the ACM, Apple has abused its dominant position with these practices. Dating app providers can now charge their customers in various ways. ACM has enforced these changes by imposing a penalty. Ultimately, the sum of all penalty payments amounted to 50 million euros.”
Dating app developers in the Netherlands still pay Apple 27% of the value of an in-app transaction
Martijn Snoep, chairman of the ACM board: “We want everyone to be able to benefit from the digital economy. In the digital economy, powerful companies have a special responsibility to keep the market fair and open. Apple took no responsibility and abused its dominant position over dating app providers. We are pleased that Apple has finally brought its terms into line with European and Dutch competition rules. This will give app providers more competitive opportunities and ultimately consumers will benefit. advantages.”
Under the new rules Apple has imposed, dating app developers will still have to pay Apple a commission for purchases made outside of the App Store payment platform, albeit at a small discount. Those who paid Apple 30% of the value of an in-app transaction related to a dating app are now paying 27%.
Apple today released a statement saying, “We do not believe some of these changes are in the best interests of our users’ privacy or data security. As we have stated before, we disagree with the original ACM ban and we will appeal against this.”