Apple’s payment offer to third parties is not enough for the Dutch regulators
The Dutch Authority for Consumers and Markets (ACM) has reportedly rejected Apple’s proposed changes in the App Store that would allow dating app developers to use third-party payment systems, corresponding 9to5Mac and the Coalition for App Fairness. The Dutch regulator ordered the change in December and has been back and forth with the company about how it should be implemented — fining Apple millions of dollars in the process. Now Apple could face further penalties.
Corresponding a journalist’s tweet translated by 9to5Mac, the regulator says Apple’s latest proposal to allow developers to use third-party payment systems is an “improvement” over its previous ideas, but is still “insufficient to comply with European and Dutch regulations.” Apple and the ACM did not immediately respond The edge‘s request for comment.
Apple’s latest proposal that it submitted on 03/27said that dating app developers could use either a third-party payment system or Apple’s, not both, and that developers would have to warn users if they were interacting with a system that Apple doesn’t control. The same applies when the developer sends users to their website to complete a purchase.
Apple also said developers using alternative payment systems would still owe the company a 27 percent commission on in-app sales, compared to the 30 percent it gets from most in-app payments using its own system takes. (If the developers make less than $1 million in revenue per year, that would compare very poorly to Apple’s Small Business Program rate of 15 percent.)
Apple previously suggested that dating app developers – the only people affected by the ACM’s order – must submit separate versions of their apps for the Netherlands. His plan in March dropped that requirement after the regulator rejected the previous proposal because he is “unreasonable”.
In late March, the ACM said that was the case Evaluation of Apple’s proposal after the company was fined about $55 million. The regulator said it could “issue another order with periodic penalties (this time with potentially higher penalties)” if it determined Apple’s proposal was insufficient. It had assessed penalties weekly, invoice the company 5 million euros (approximately $5.6 million) each week – up to a maximum of €50 million (approximately $55 million at the time). Now that the cap has been reached, the regulator is reportedly working on additional penalties, saying the originals “didn’t have the desired result”.
The Coalition for App Fairness has welcomed the ACM’s decision. The advocacy group consists of companies like Epic Games, Spotify, Basecamp, and Match Group (which makes dating apps like Tinder, Match.com, and OkCupid), who object to the high fees and the App Store’s role as the sole place to get software for iPhones and get iPads. in one statement released on MondayThe group said it “stands ready to support the ACM as it continues to seek fair treatment and remedies for developers,” even as Apple “remains on its heels to protect its monopoly power at all costs.”
The coalition also said that Apple’s rejected proposal imposed “unnecessary requirements that created friction aimed at discouraging dating app developers from exploiting the ACM regulation.”
https://www.theverge.com/2022/5/2/23053935/apple-app-store-acm-proposal-rejected-further-fines-dating-apps Apple’s payment offer to third parties is not enough for the Dutch regulators