Apple has relented and allowed dating apps in the market to use alternative payment technologies.
On Saturday the Authority for Consumers and Markets provided an update on the multi-month saga which has drawn high level attention to Apple's approach to complying with competition orders.
Customers of dating apps used to only be able to use Apple's payment method. The update stated that Apple abused its position with those practices. Dating-app providers can now allow their customers to pay in a variety of ways.
Since January, Apple has been fined 50 million for non-compliance with its order, and was warned that it could be fined further if it didn't resolve its concerns.
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After finding problems with how Apple had implemented earlier concessions and judging conditions it applied to be " unreasonable", as well as accusing it of creating an "unnecessary barrier" for developers of dating apps, the watchdog considered a revised offer Apple made back in March.
Apple is now in compliance with the rules. There is no need for a new order to be imposed due to periodic penalty payments. Information from dating-app providers and independent experts was collected over the course of the past few months.
The chairman of the board said that they want everyone to benefit from the digital economy. Powerful companies have a responsibility to keep the market open. Apple abused its position vis--vis dating app providers. Apple's conditions have been in line with European and Dutch rules for a long time. There are more opportunities to compete. Consumers will get the benefits as well.
The details of how Apple revised its concession to satisfy the ACM are not immediately clear, but, among a number of changes to its original offer, Apple previously dropped a requirement that dating apps build a separate binaries.
One of the following may be done by Apple in the Netherlands.
Developers of dating apps who want to use Apple's in-app purchase system can do so. Those who wish to use a different payment system will need to request the StoreKit External Purchase Entitlement or the StoreKit External Purchase Link Entitlement.
The entitlements that comply with the order are only available for dating apps on the App Store in the Netherlands, and apps distributed pursuant to those entitlements must only be used in an iPad and/ or iPadOS app on the Netherlands storefront. Each dating app will be reviewed by Apple to make sure it complies with the terms and conditions of the entitlement, as well as the App Store Review Guidelines and the Apple Developer Program License Agreement.
After Apple filed an objection to the order and succeeded in suspending part of it, the full details have not been released. The court allowed the ACM to impose periodic penalty payments against Apple for not complying.
The company was contacted for comment. The company pointed to an update it put out Friday where it discuses the "additional adjustments" it made to its offer after further conversations with the academy.
In-app purchases that qualify for its lower commission rate are subject to a 3% commission discount.
This discount is discussed in Apple's documentation for developers.
“Consistent with the interim relief ruling of the Rotterdam district court, dating apps that are granted an entitlement to link out or use a third-party in-app payment provider will pay Apple a commission on transactions. Apple will reduce its commission by 3% on the price paid by the user, net of value-added taxes. This is a reduced rate that excludes value related to payment processing and related activities. Developers will be responsible for the collection and remittance of any applicable taxes, such as the Netherlands’ value-added tax (VAT), for sales processed by a third-party payment provider.”
Some of the changes are not in the best interest of our users. The additional changes were made at the request of the ACM. Apple says they disagree with the original order and are appealing it.
The report was updated with information from Apple. The date of the update was incorrect as we originally stated.
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