Apple’s third-party payment proposal not good enough for Dutch regulators

The Dutch Authority for Consumers and Markets (or ACM) has reportedly rejected Apple’s proposed changes to the App Store that would allow dating app developers to use third-party payment systems, according to 9to5Mac and the Coalition for App Fairness. The Dutch regulator ordered the change in December and has been back and forth with the company over how it should be implemented – and charged Apple millions in fines along the way. Now Apple could face further penalties.

According to a journalist’s tweet Translated by 9to5Mac, the regulator says Apple’s most recent proposal to allow developers to use third-party payment systems is an “improvement” over its previous ideas, but still not “good enough to comply with European and Dutch regulations”. Apple and the ACM did not immediately respond to The edgerequest for comment.

Apple’s latest proposal, which it submitted on March 27, said dating app developers could use Is a third-party payment system or Apple’s, not both, and that developers should warn users that they were about to interact with a system that Apple did not control. The same is true if the developer sends users to their site to make a purchase.

Apple also said developers using alternative payment systems will still owe the company a 27% commission on in-app sales, compared to 30% for most in-app payments using its own system. (If developers were earning less than $1 million in revenue per year, that would be very unfavorable compared to Apple’s 15% Small Business Program rate.)

Apple previously proposed that dating app developers – the only people affected by the ACM order – should submit separate versions of their apps for the Netherlands. Its plan in March dropped that requirement after the regulator dismissed the previous proposal as “unreasonable”.

In late March, the ACM said it was evaluating Apple’s proposal after fining the company about $55 million. The regulator said it “could impose another order subject to periodic penalty payments (with potentially higher penalties this time)” if it found that Apple’s proposal was not sufficient. He had assessed the penalties on a weekly basis, charging the company 5 million euros (about $5.6 million) each week it failed to comply – up to a maximum of 50 million euros ( about $55 million at the time). Now that the cap has been reached, the regulator is reportedly working on additional penalties, saying the originals “did not have the desired outcome”.

The Coalition for App Fairness applauded ACM’s decision. The advocacy group is made up of companies like Epic Games, Spotify, Basecamp and Match Group (which makes dating apps such as Tinder, and OkCupid) who oppose high App Store fees and its role as a unique place. to get software for iPhones and iPads. In a statement on Monday, the group said it “stands ready to support ACM as it continues to seek fair treatment and remedies for developers” even as Apple “continues to dig deeper into its heels to protect its monopoly power at all costs”. .”

The coalition also said Apple’s rejected proposal “imposes unnecessary, friction-creating requirements in an effort to discourage dating app developers from taking advantage of the ACM order.”


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