The Netherlands Authority for Consumer and Markets (ACM) has ruled that Apple’s plan to allow App Store dating apps to use third-party payment methods for in-app purchases does not adequately meet the requirements of a previous ruling.
As a result, the ACM has already imposed the aforementioned fine of 5 million euros on Apple, and the fines will continue to be added up to 5 million euros per week, up to a maximum of 50 million euros, until Apple complies.
After Apple announced last week that dating apps in the Dutch App Store would have the option to let users use third-party payments for in-app purchases, the ACM said it would assess whether the changes were in line with the previous ruling. The ACM has previously ruled that Apple’s App Store is unfair and that it engages in anticompetitive business practices.
The changes announced by Apple failed to “meet the requirements,” ACM said in a press release today. “Currently, dating app providers can only express their ‘interest’. In addition, Apple has placed several barriers for dating app providers to use third-party payment systems,” the ACM alluded to the fact that dating apps must first request and obtain Approval for special rights in the App Store to direct users to third-party payment methods.
Apple’s plans also appear to require developers to choose between offering a third-party in-app purchase option or being able to direct users to an external payment option, and ACM says Apple must allow developers to offer both options.
Apple must adjust the conditions under which dating app providers enter the Dutch app store. In the App Store, dating software vendors must also be able to use payment systems other than Apple Pay. Additionally, dating app vendors must have the ability to reference payment systems outside of the app. This is already set out in the ACM’s August 2021 order to impose periodic fines on Apple. On December 24, 2021, the court ruled that this part of the order was not illegal.
A major concern about Apple’s plans is that it intends to continue charging commissions for in-app purchases made with dating apps, even if developers use third-party payment methods. Apple has not disclosed how much that commission will be and how it plans to implement it.
Apple CEO Tim Cook has previously said that Apple will continue to take a cut of all in-app purchases even if developers use third-party payment methods, but he noted that such a practice doesn’t exist yet.