ACM Archives - Gizmochina

Apple fines reach €50 million in the Dutch dating apps dispute

Sean — Tue, 29 Mar 2022 09:32:46 +0000

Earlier this week, we had reported on Apple facing additional fines in the Netherlands for failing to comply with orders from the Dutch Authority for Consumers and Markets (ACM). While the company had almost hit the fines upper limit of 50 million EUR (roughly 55 million US Dollars), now the cumulative fines have reached this point.

For those unaware, the Cupertino based giant was facing the fines for failing to provide the mandated alternative payment system for Dutch dating apps. Since this rule came into effect, the iPhone maker would face 5 million EUR in fines each week till the fines hit 50 million EUR. However, due to its failure to provide adequate measures, Apple kept receiving the fines for 10 weeks in a row.

So far, the company has chosen to offer Dutch dating apps to use external payment methods, but developers that opt for this system will have to submit a separate app binary and will not be able to offer 3rd payment options and in app purchases simultaneously. However, the ACM did not approve of the brand’s attempt at making developers choose between using either alternative payments or in app payments and required Apple to offer both options.

Furthermore, the company had even reduced its commission on purchases using 3rd party payment systems down to 27 percent instead of the usual 30 percent, but developers would again have to submit a monthly record of sales so Apple can track its commission. With the upper limit of the fines being hit, its unknown what actions the ACM will take against the tech giant, although, it is likely that it would face stricter punishment in the form of higher fines. As of right now, the ACM is currently in the process of reviewing Apple’s latest proposal for compliance and said that it “should result in definitive conditions for dating app providers that wish to use the App Store.”

Apple may face over €50 million in fines over Dutch antitrust case

Sean — Mon, 28 Mar 2022 13:05:03 +0000

Apple has just been hit with another 5 million EUR (roughly 5.5 million US Dollars) in fines in the Netherlands. The fine arrives after the company failed to comply with the recently mandated alternative payment system for dating apps.

For those unaware, we had previously reported on the Dutch government mandating the Cupertino based giant to offer other forms of payment that bypassed its App Store. However, it seems like the brand failed to comply in time as it was again hit with the 5 million EUR fine like last time. So far, the iPhone maker has been fined for around 45 million EUR (roughly 49.5 million US Dollars) by the Dutch Authority for Consumers and Markets (ACM).

These fines have been stacking up week after week, as Apple continues to delay the changes on its App Store. Previously, the ACM had stated that it would fine the company for 5 million EUR each week, with a maximum fine of up to 50 million EUR. So apparently, it seems like Apple might just exceed the initially stated total fine soon. As per a Reuters report, the fines following the 50 million EUR threshold might be even higher than the original ones.

In other words, we will have to wait and see how the situation pans out for Apple. Notably, the ACM is not happy with Apple’s decision on forcing dating apps to choose between the standard in app purchase system or the new alternative payment platform. It has even stated that the dating apps might be able to offer both option in the future, which has caused these fines.

Dutch authority finds Apple’s in-app purchase rules anticompetitive; demands App Store changes

Jeet — Fri, 08 Oct 2021 04:08:46 +0000

Troubles for Apple just keeps piling on. After the report that Korea could make Apple pay $46 million in undeclared benefits and the company facing charges over NFC chip in iPhones and Apple Pay Europe’s antitrust regulators, Dutch antitrust authority has now found the Cupertino-based giant involved in anti-competitive behavior.

According to the latest report from Reuters, the Dutch antitrust authority has found that Apple’s rules requiring software developers to use its own in-app payment system are anti-competitive and has ordered it to make changes.

While Apple is facing similar challenges in several countries, the Netherlands’ Authority for Consumers and Markets (ACM) last month informed the US-based technology giant of its decision, making it the first antitrust regulator to make a finding of Apple having abused market power in the app store.

Interestingly, ACM has not levied any fine against Apple but has demanded changes to the in-app payment system. The decision is expected to get published in the coming weeks.

For those who are unaware, Apple has an in-app-store payment policy, which requires the application developers to exclusively use Apple’s payment system where the company takes out commissions, ranging from 15 percent to 30 percent.

The Dutch antitrust authority initiated an investigation in 2019 to find out if Apple’s practices amounted to an abuse of a dominant market position. However, it later reduced the scope of the investigation to focus only on dating market apps.

It was after a complaint filed by the Match Group, which owns the popular dating platform Tinder. The company had said that Apple’s rules were hindering it from direct communications with its customers about payments.

Recently, South Korea enacted a law that bars app store operators from forcing developers to use their official payment systems. Apple as well as Google are due to respond this month on how they plan to comply with the new rule.