Apple Sends New Offer to Dutch Authority While Racking Up Fines
- Wednesday, April 13 2022 @ 10:02 am
- Contributed by: kellyseal
- Views: 850
Apple has extended a new proposal to Dutch regulators, who have continued to fine the company for non-compliance with its order.
The tech giant submitted a new offer to the Authority for Consumers and Markets (ACM) pertaining to the regulator’s order to allow dating apps to use third-party payment systems instead of forcing them to use the Apple Store, according to Tech Crunch. The ACM acknowledged receiving Apple’s proposal but shared no details publicly.
“We will now assess the substance of these proposals,” ACM said in a statement, according to Tech Crunch. “In that context, we will also sit down with various market participants. Our aim is to complete this assessment as soon as possible.”
Apple has not adequately complied with the order, and to date has racked up about 45 million euros in fines. Experts have noted that if Apple Store and Google Play must allow third party payment systems in the Netherlands, it could set a precedent for other countries to follow suit and cut into their revenue streams. (Apple takes about 30 percent of all in-app sales made via apps in its Store.)
Apple has offered some changes to its processes in response to the ruling, but the ACM has ruled the company is still non-compliant. It rejected a proposal by Apple requiring developers to submit a separate binary of their app to the Netherlands App Store, because it required developers to choose between a third-party option and Apple’s payment system. Apple also said it would collect a 27 percent commission on all purchases made via third-party payment platforms, even though Apple wouldn’t be responsible for billing issues or refunds.
The ruling has attracted attention among regulators in Europe as Tech Crunch points out, specifically in regard to the Digital Markets Act (DMA). The EU is in process of finalizing a new series of antitrust compliance policies to make digital markets more open, fair and transparent.
In other words, the Apple Store would be required to be friendlier to third-party payment platforms not just for dating app developers in The Netherlands, but across all apps in the European Union. Apple is fighting against this type of regulation, which would have far-reaching consequences and could lead to more regulation in other countries outside of the EU.
Google recently reached an agreement with Spotify to allow the streaming giant to use its own payment system within its app, an olive branch towards working with third party providers. The tech giant said it is working on billing choice with a handful of developers in select countries, trying to get ahead of the curve.
