Netherlands' Authority for Consumers and Markets 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 to charge 27% commission on 3rd party payments in Dutch dating apps

Sean — Fri, 04 Feb 2022 13:29:43 +0000

Following the dating app dispute in Netherlands, Apple has announced that it will be charging 27 percent commission on purchases through a third party payment systems in the application.

Back in October 2021, we had reported on the Dutch authority labeling the Cupertino based giant’s in app purchase rules as anti competitive. Netherland’s Authority for Consumers and Markets (ACM) had ordered the iPhone maker to make changes in order to not face a fine. However, Apple had failed to comply in time and faced a 5 million US Dollars fine per week till it eventually made the changes. Now, it seems that the brand is finally moving to comply with the Dutch authority.

The company further added that “Consistent with the ACM’s order, dating apps that are granted an entitlement to link out or use a third-party in-app payment provider will pay Apple a commission on transactions. Apple will charge a 27% commission on the price paid by the user, net of value-added taxes. This is a reduced rate that excludes value related to payment processing and related activities. Developers will be responsible for the collection and remittance of any applicable taxes, such as the Netherlands’ value-added tax (VAT), for sales processed by a third-party payment provider.”

On its developer support site (Via MacRumors), the company shared an update that revealed that Apple would take a 27 percent commission, which is lower than its usual 30 percent commission rate that it charges on payments made through alternative payment methods in dating apps. It also warned that it will not be aware of any purchases made through other methods, so it won’t be able to assist users with refunds, purchase history, subscription management, and other issues that it usually keeps track of. Despite complying with the original order, Apple is still appealing the ACM ruling.

Apple faces over $5 million in weekly fines over Dutch dating app dispute

Sean — Tue, 25 Jan 2022 12:28:51 +0000

Apple is facing a sizeable fine from the Dutch competition regulator, the Authority for Consumers and Markets (ACM). The company is being hit with 5 million Euros fine (roughly 5.6 million US Dollars).

According to the ACM (Via TheVerge), the Cupertino based giant is facing the fine for failing to allow dating app developers to use third party payments methods. It further added that the iPhone maker will continue to face additional 5 million Euros fine every week if they do not comply with the order, which was first issued back on 24th of December 2021. While the fine of more than 5 million US Dollars is a large amount, it likely won’t impact the multi trillion dollar company.

However, failing to meet the new standards might have Apple face stricter actions. On the other hand, the move from the ACM would also encourage similar agencies from different nations to also take such actions against the brand. An example of this is South Korea, which has already mandated third party payment systems being allowed on applications on the company’s App Store.

Apple had initially announced that it will be making changes ahead of its 15th January 2022 deadline, in accordance to ACM’s order. However, it has yet to roll out support for the third party payment providers in the Dutch App Store. ACM stated that “Apple has failed to adjust its conditions, as a result of which dating-app providers are still unable to use other payment systems.”

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.