Contributed by: kellyseal on Monday, January 10 2022 @ 08:08 am
Last modified on Monday, January 10 2022 @ 09:55 am
Apple will now be required to allow dating app developers to offer in-app payment options for users, or face severe fines.
The Netherlands Authority for Consumers and Markets (ACM) issued the ruling, saying that Apple was taking advantage of dating app developers who rely on the Apple Store to make their products available to iPhone users. Because of Apple’s payment structure, app users are required to go through the Apple Store to subscribe or purchase coveted features on dating apps, rather than purchasing directly. Apple takes a 15 to 30 percent share of every purchase made in its store.
In the ruling, the ACM said that: “If Apple does not adjust the unreasonable conditions within two months, it will have to pay a periodic penalty of 5 million euros per week up to a maximum of 50 million euros.”
According to The Verge[*1] , the ruling only applies to dating apps, not to games and other app categories. Match Group was one of the companies who complained to the ACM about Apple’s payment structure.
The ruling specified dating apps specifically because most dating app users have Android -based smartphones or iPhones, so app developers rely on the app stores to reach their customers. To maximize reach among users, the apps need to be available in the most popular platforms, so people using different devices are able to communicate with one another.
“Some app providers are dependent on Apple’s App Store, and Apple takes advantage of that dependency,” said Martijn Snoep, chairman of the board of ACM, in the ruling. “Apple has special responsibilities because of its dominant position. That is why Apple needs to take seriously the interests of app providers too, and set reasonable conditions.”
Apple has already filed an appeal to the ruling according to The Verge, arguing that it “has invested tremendous resources helping developers of dating apps reach customers and thrive on the App Store, and has the right under EU and Dutch law to charge developers of these apps a fee for all the services and technologies Apple provides them.”
While the appeal is in process, Apple still faces increased scrutiny in other markets, including in the U.S., which recently ruled that Apple had to open their structure to third parties after a legal battle with Epic Games, but that ruling was contested before it was scheduled to take effect. South Korea passed a law in August this past year to allow developers to use payment systems outside of Apple, Google Play and other app store platforms, though the details of how it will work remain a question.