Face fines of up to €50 million! "Apple tax" "under siege" in the Netherlands

On December 24, the Dutch Consumer and Market Authority (ACM) ordered Apple to tweak unreasonable rules in the App Store, requiring the App Store to allow dating app developers to freely choose their payment system or face fines of up to €50 million.

Currently, apple-run App Store prohibits all app developers from using third-party payment systems outside of Apple Pay and takes a 15%-30% commission on every transaction. The commission part is also known as the "Apple tax", if you can use a third-party payment system, consumers may bypass the "Apple tax" and pay the developer directly, and enjoy the resulting price reduction and other benefits.

In addition, the ACM survey found that 85% of app developers in the App Store do not offer paid services (such as subscriptions, digital product purchases, etc.), but still pay the App Store $99 per year for services. Another 15% of developers who add paid services will also be subject to additional conditions.

ACM believes that these conditions are not necessary to operate the App Store and are neither reasonable nor suspected of violating competition rules. ACM Chairman Martijn Snow said Apple has a special responsibility for its dominance and not only needs to protect the interests of developers, but also to set reasonable rules.

The announcement shows that dating apps can only reach Apple mobile phone users through the App Store, which makes developers highly dependent on Apple. Even if Apple proposes unreasonable conditions, developers have no choice. Based on this, ACM determined that Apple had a dominant position.

It is reported that the fine originated from the ACM's decision on August 24 this year, and Apple's behavior was accused of violating local competition laws and the Treaty on the Operation of the European Union. Apple subsequently appealed the decision and demanded that the content of the penalty not be made public until the judge's ruling.

The Ruling Documents made public on December 24 show that the Rotterdam District Court in the Netherlands suspended some of ACM's penalty decisions, but agreed with the ACM's assertion that "Apple is abusing dominance." As part of the penalty was suspended, the judge reduced the amount of the fine.

In contrast, Apple must adjust the Dutch App Store's restrictions on dating software developers by January 15, 2022, which allows the use of payment systems other than Apple Pay in the App Store.

In response, Apple responded that it disagreed with ACM's decision and would file an appeal.

Written by: Nandu reporter Huang Huishi