Competition authority supporting app developers against Apple
App developers got a Christmas greeting from the Netherlands Authority for Consumers and Markets (ACM) that ordered Apple to adjust its App Store’s payment rules. Apple is forcing developers to use the Store’s built in payment system and to pay a commission of 15 – 30% to Apple. Developers cannot add their own payment system with users paying directly to the developer of the app.
The Store’s payment rules have been criticized by competition authorities around the world insisting the company must accept alternative payment systems. Apple has since long a big court case in the US where the maker of popular game Fortnite provoked the Store rule by adding its own payment system. Fortnite maker Epic Games has appealed a first ruling by the US court and the market is still waiting for the final outcome of the case.
The Dutch case is about dating apps but is of course of big interest developers of all types of apps including gaming which is an impressive part of the Store’s total. Measurement and analyses company App Annie estimates that 60% of Apple’s iOS revenue come from gamers.
The Dutch authority says Apple must adjust “the unreasonable conditions in its App Store that apply to dating-app providers. Dating-app providers are currently not able to choose freely a payment system for purchases made in their dating apps by consumers.”
“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. In this way, ACM seeks to improve the situation for app providers regarding Apple’s unreasonable conditions.”
Martijn Snoep, Chairman of the Board of ACM, said:
“Some app providers are dependent on Apple’s App Store, and Apple takes advantage of that dependency. 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. That is what we are forcing Apple to do with this order. Protecting people and businesses against abuse of market power in the digital economy is one of our most important duties.”
Apple made a statement saying:
“We disagree with the order issued by the ACM and have filed an appeal. Apple does not have a dominant position in the market for software distribution in the Netherlands, has invested tremendous resources helping developers of dating apps reach customers and thrive on the App Store.”
Moonshot News is an independent European news website for all IT, Media and Advertising professionals, powered by women and with a focus on driving the narrative for diversity, inclusion and gender equality in the industry.
Our mission is to provide top and unbiased information for all professionals and to make sure that women get their fair share of voice in the news and in the spotlight!
We produce original content, news articles, a curated calendar of industry events and a database of women IT, Media and Advertising associations.
