Malcolm Owen
Apple has told a Dutch regulator it is complying with an order to enable third-party in-app payments to the country's dating apps, after receiving five weekly $5.7M fines on the matter.
Apple was ordered by the Authority for Consumers and Markets (ACM) to allow dating apps operating in the Netherlands to use third-party payment processors for in-app payments. After weeks of dragging its heels, Apple has written to the ACM saying it has done enough.
In a letter to the regulator seen by Reuters, Apple argues it has complied with the ACM's order on alternatives to the existing App Store In-App Payment (IAP) mechanism. According to Apple in Monday's letter, its solution would require only a "minor technical change" and no additional costs to developers.
The ACM has handed out 5 million euro ($5.7 million) fines to Apple for the last five consecutive weeks for failing to sufficiently comply with its order. It originally set a January 15 deadline for Apple to change its policies to enable external payment methods to be used by dating apps.
Initially, Apple announced on the deadline day that it would allow the third-party payment mechanisms, and that it would provide two "optional new entitlements" as added payment processing options. These included adding a link directing customers to the developer's website to complete a purchase, and the active use of a third-party payment system within the app itself.
However, this meant developers had to submit a specific version of their app to the App Store enabling the third-party payments, rather than offering it alongside the existing IAP mechanism.
Apple also told developers they would be "responsible for addressing" payment issues with users since it couldn't "validate the security and safety of payments" outside the App Store system. Later, Apple said it would charge a 27% commission on apps offering third-party payments instead of 30%, and that developers would be required to report sales.
On February 14, the ACM deemed Apple's measure of requiring a separate app to be an "unreasonable condition that is at odds with the requirements that Apple had set out." It also had "doubts about several other elements" outlined by Apple.
The ACM has the power to fine a maximum of 50 million euros for non-compliance, which it has decided to spread into ten weekly fines. So far, Apple has been issued half of the fines, but doesn't seem to be in a hurry to stop them.
The attitude has caught the attention of European antitrust head Margrethe Vestager, who said it demonstrates how "some gatekeepers may be tempted to play for time or try to circumvent the rules."
Charles Martin
Andrew O'Hara
William Gallagher
3 Comments
This has turned into an argument about SKUs rather than an argument about 3rd party payment options. Apple wants to use the SKU solution because it's technically easier to implement while the ACM appears to believe that there's something anticompetitive about multiple SKUs...which is a completely new development. I'm not aware of any movements in the tech industry to outlaw multiple SKUs for hardware/software.
I have to wonder why the Dutch are only addressing "dating" apps. I checked and The Netherlands allows legalized prostitution. This has been a law since 1830 although it appears that it's only legal for individuals (no Johns). I could easily see dating apps being used for legalized prostitution, however, I also believe this would be agains Apple's allowed us requirements. I'm not saying that's what they are being used for but I find it interesting that only dating apps are being addressed. I know Apple doesn't allow even soft-porn-based apps so I see this as a possible workaround by the Dutch. I now have to wonder how many "dating" sites are being used for the same thing throughout the world.
No, I don't have any information that any are doing this but I'm sure there is illegal gambling being done through apps so why not illegal (and legal) prostitution?