The Dutch regulatory body has mandated that Apple permits dating apps to provide users with alternative payment methods within the App Store.
Apple's App Store payment policies got another blow in the Netherlands, where the Authority for Consumers and Markets (ACM) declared that Apple was violating Dutch competition law by preventing dating apps from offering users alternative payment options. The ACM issued this decision on Christmas Eve, stating that Apple's conditions for dating app providers were unreasonable and required Apple to alter its policy. If Apple fails to comply within two months, it could face a fine of up to €50 million.
Initially, the ACM took interest in Apple's payment policies in 2019, over concerns about market abuse. Apple requires developers to use its in-app payment system and takes a 15-30% cut of each purchase. During the investigation, the scope was narrowed down to focus on dating apps. Match Group, a prominent player in the dating app sector, usually consisting of Tinder, Plenty of Fish, and Hinge, filed a complaint with the ACM, alleging that Apple's rules were impeding its communication with customers over payments.
Chairman Martijn Snoep of the ACM, emphasized in a statement that defending consumers and businesses from market power abuse is one of the ACM's primary duties. Snoep added that developers, especially those dependent on the App Store, should also be taken into account by Apple when setting conditions, and that's what the ACM is forcing Apple to do.
Several countries, such as the U.S., are currently scrutinizing Apple's App Store payment policies. In South Korea, a new law came into effect in September, banning developers from using Apple and Google's mandatory in-app payment systems. Earlier in September, Apple reached an agreement with Japan's competition regulator regarding "reader apps." Under this agreement, Apple permits developers to include a single external link to an alternative payment method within these apps.
In the U.S., Apple is currently defending its App Store payment policy in the Epic v. Apple case. After the judge ruled against Apple and asked it to allow developers to use external links for alternative payment options, Apple appealed the decision and was granted a delay for compliance.
An Apple representative told Gizmodo that the App Store is a safe and trusted space for users, and a beneficial opportunity for developers. The spokesperson disagreed with the ACM's finding of Apple's dominant position in the Netherlands and said that the company had appealed the regulator's decision. Match Group didn't provide a comment on the ACM's decision during the publication process.
The ACM's decision against Apple's payment policies in the Netherlands has widely appealed to tech companies, as it challenges Apple's requirement for dating apps to use its in-app payment system. This ruling, which could potentially result in a €50 million fine if not complied with, highlights the future of app store payments and competition law.
The tech giant's ongoing dispute with Match Group over payments is not isolated, as other countries, including the U.S., are also scrutinizing Apple's App Store payment policies. The future of these policies is uncertain, with South Korea already banning mandatory in-app payment systems for app developers.
Apple's argument that the App Store is a trusted space for users and a beneficial opportunity for developers may not hold water in the face of growing scrutiny. The tech company has appealed the ACM's decision in the Netherlands, showing a determined stance to maintain its current policies.
The tech industry is witnessing a shift in power dynamics, with regulators and tech companies engaging in a battle over payments and app store policies. This trend is likely to continue in the near future, potentially reshaping the future of tech and digital payments.
