Apple Would Rather Pay Up to €50 Million in Fines Than Address 'Gatekeeper' App Store Behavior, Says EU Chief

The Dutch competition authority brought forward concerns about developer access to third-party payment methods on the App Store, and Apple would rather pay a maximum of 50 million dollars in fines.

During a speech about the digital economy and privacy, Vestager said that Apple prefers paying fines rather than complying with a decision of the Dutch Competition Authority on the terms and conditions for third parties to access.

Effective enforcement, which includes the Commission having sufficient resources to do so, will be key to ensure compliance. Some gatekeepers may be tempted to play for time or try to circumvent the rules. Apple's conduct in the Netherlands these days may be an example. As we understand it, Apple essentially prefers paying periodic fines, rather than comply with a decision of the Dutch Competition Authority on the terms and conditions for third parties to access its App Store. And that will also be one of the obligations included in the DMA.

Last month, in compliance with a ruling from the Netherlands Authority for Consumers and Markets, Apple announced it would allow dating apps on the Dutch App Store to use third-party payment methods. In order to do so, developers are forced to keep two separate app binaries, one for their Dutch customers and another for customers elsewhere.

Apple will collect a 27% commission on all purchases made with third-party payment methods, 3% less than the typical 30% cut the company takes when developers use the in-app purchase system. Apple has a 27% commission on top of developers paying for a third-party payment processing platform.

The authority said it would investigate the changes after Apple announced its plan.

The agency ruled that Apple's plans weren't enough to address its concerns around the App Store. The authority said it would fine Apple up to a maximum of 50 million until it complies. Apple has been fined five times, amounting to 25 million.

Apple has refused to put forward any serious proposals. Apple's behavior is regrettable and it has been explained to them how they can comply with the requirements of the ACM.