App Store: Netherlands force Apple to allow alternative payments
The competition authority in the Netherlands (ACM) is forcing Apple to offer alternative payments at the app level on the App Store. This follows an investigation into anti-competitive practices that began in 2019.
Alternative payments must arrive on the App Store
For the authority, Apple has violated competition laws and must therefore modify its App Store to allow the use of alternative payments. As it stands, developers are forced to go through Apple’s payment system. This imposes a commission of 15% or 30% depending on the income of the developers. If the income is less than a million dollars per year, then the commission is 15%. Beyond that, it’s 30%.
The investigation initially focused on whether Apple had a dominant position. It was then changed to focus primarily on dating apps, including the Match group (owner of Tinder) which criticized the iPhone maker’s practices.
Today the authority indicated :
Apple must adapt the conditions of access to the Dutch App Store for developers of dating applications. They must also be able to use payment systems other than Apple’s in the App Store. In this context, developers of dating applications must also be able to refer in their applications to payment options outside the application.
Apple risks a fine of up to 50 million euros if the group does not comply. The Dutch authority says the company has until January 15 to implement the changes.
Unsurprisingly, Apple criticizes this decision. “We do not agree with the order issued by the ACM and we have appealed”, the manufacturer told Reuters. “Apple does not have a dominant position in the software distribution market in the Netherlands, has invested considerable resources in helping developers of dating apps reach customers and prosper on the App Store,” he added.
A similar case in South Korea
The Dutch announcement comes after the iPhone maker lost a fight in South Korea to prevent the passage of a law requiring major vendors with app stores (like Apple and Google) to allow developers to use third-party payment services. Google has indicated that it will allow these payments, but that it will still take a commission on them. Apple has not commented on its Korea compliance plans.
