Apple’s giving up ground in its App Store fight with Dutch regulators and Tinder

Illustration by Alex Castro / The Verge

Apple updated its rules about how Dutch dating apps can use third-party payment systems after talking with the Netherlands Authority for Consumers and Markets. The new rules give developers more flexibility about which payment systems they use, change the language users see when they pay, and remove other restrictions that were put in place.

The rules only apply to Dutch dating apps, but they show what Apple is willing to do to comply with government regulation as the EU and US gear up to fight tech monopolies.

After receiving a complaint from Match Group, the company behind dating services like Match.com, Apple was ordered to allow dating apps to use payment services other than the one built into the OS. Apple has come up with a number of solutions for complying with the order, which the regulators have said aren't good enough. The changes Apple made to its rules prior to the Friday update weren't in line with Dutch and European laws.

Even while the company works on changes, it has racked up tens of millions of dollars in fines.

Changes Apple announced on Friday are an update to its previous proposal. The rules still make developers show a message before they show the third-party payment screen, but Apple's new proposed language is less likely to scare potential customers off.

The proposed language was changed.

This app doesn’t support the App Store’s payment system.

All purchases in this app will be managed by the developer “.” You will no longer be transacting with Apple. Your stored App Store payment method and related features, such as subscription management and refund requests, will not be available. Apple is not responsible for the privacy or security of transactions made with this developer.

It's now read:

Your payment will be managed by the developer. You will no longer be transacting with Apple.

All purchases in this app will be processed by a service provider selected by the developer “developerName”. The developer will be responsible for the payment methods and related features such as subscriptions and refunds. App Store features, such as your stored App Store payment method, subscription management, and refund requests, will not be available.

Users will see different options on the prompt They used to see buttons that said "continue" or "cancel". There was a button that said "I Understand." If the developer links the messages to a third-party payment site, users will see that as well.

Developers won't have to choose between a third-party in-app payment or an external payment link under Apple's new rules. The price of items available on the website you own or have responsibility for will not be included in the link to an external payment.

If a developer wanted to use a third-party payment processor in their app, they had to meet certain requirements. Developers had to find a processor that supported things before Friday.

• “Payment method offering and diversity (support for credit cards, debit cards, etc.)”
• Value-added services such as transaction tax management and handling
• Payment security and privacy policies that “exceed Level 1 Payment Card Industry compliance”

The payment processor had to have 100 percent availability and respond to requests within 300 milliseconds according to the rules. Apple still has some requirements for third-party payment processors, but they seem to be much broader, like Level 1 Payment Card Industry compliance for handling credit and debit card data.

The third-party payments commission structure has been updated. It was thought that Dutch dating app developers would have to pay a 27 percent commission on third party transactions. There is a three percent discount from Apple's standard 30 percent cut on in-app purchases, but having to pay 27 percent would be a significant increase from the 15 percent that developers pay out of their recurring income.

Related

Apple proposes 27 percent commission in Dutch app store dispute

If you pay Apple 30 percent, you will pay 27 and if you pay 15 percent, you'll pay 12. The change at least means that smaller developers won't be paying the iPhone because of the small discount.

In its previous rebuttals of Apple's proposals, the ACM didn't seem to take issue with Apple's commission structure.

Apple made it clear in its Friday news post that it isn't happy with the situation it's in. Although Apple is committed to constructive engagement with regulators, it doesn't believe some of the changes are in the best interests of our users. The company disagrees with the initial order and is appealing it.