Apple Fined 5 Million Euros Per Week for Non-Compliance

Apple has been fined five million euros for not complying with a recent ruling regarding dating apps leveled by the Authority for Consumers and Markets, a watchdog agency in The Netherlands.

The ACM said that Apple had not yet complied with its order to allow third-party payment options for dating apps on the Apple Store platform, which was issued in late December. The agency also said that it would continue to fine Apple five million euros per week (roughly $5.6 million US) until it properly complies with the order, up to $50 million euros in total, according to The Verge.

The issue is that while developers can now let Apple know if they are interested in using third party payment systems in their apps, Apple has not provided a straightforward way to do this, and there is very little technical support in place from Apple to help developers move forward. Another issue is that Apple is forcing developers to choose between two options: directing users to a third-party site to complete transactions outside of the Apple Store, or to stay in the Store’s ecosystem if they want to keep in-app purchases as an option for users.

Apple has stated that to comply with the Dutch regulator, developers would need to provide a separate version of their app to access external payment options, which makes things complicated if more countries follow the Dutch agency’s lead. Apple’s terms and conditions, which app users must agree to before using the Store, are also at issue because they ban the use of alternative payment systems by dating apps, according to Tech Crunch.

Apple is fighting the ruling, saying that it would still collect commissions from transactions outside of the Apple Store, and that privacy and personal data could be at risk with this scenario.

“We are obligated to make the mandated changes which we’re launching today and we will provide further information shortly,” the company said in response to the December ruling. But according to the authority, it is still in violation, and intend to fine Apple another $5 million euros next week if it isn’t addressed.

The ACM wrote in response: “Apple has failed to satisfy the requirements on several points…The most important one is that Apple has failed to adjust its conditions, as a result of which dating-app providers are still unable to use other payment systems. At the moment, dating-app providers can merely express their ‘interest’.

“In addition…Apple seemingly forces app providers to make a choice: either refer to payment systems outside of the app or to an alternative payment system. That is not allowed. Providers must be able to choose both options.”

Tech Crunch points out that this amount is not significant in light of Apple’s billions in revenue, but it could pose a problem for the company if more countries follow the ACM’s lead.