Apple Ordered To Change App Store Policies In Netherlands

Apple has been ordered to make changes to its App Store in the Netherlands after the country’s competition regulator found the company’s payment policies broke competition laws.

In 2019 the Netherlands’ Authority for Consumers and Markets (ACM) began an investigation into Apple’s practice of requiring app developers to use in-app payment systems and pay a commission of 15 to 30 percent.

The system has also come under scrutiny from other regulators around the world.

The Dutch investigation was later reduced in scope to focus on dating apps, including those of Match Group, which operates Tinder, Match.com and OkCupid.

Competition law

Apple said it disagreed with the decision and would file an appeal.

“Apple does not have a dominant position in the market for software distribution in the Netherlands, has invested tremendous resources helping developers of dating apps reach customers and thrive on the App Store,” the company added.

The ACM’s decision was reported in October, but has only now been made public.

It ordered Apple to adjust the “unreasonable” terms in its App Store for dating app providers, allowing them to use alternative payment systems.

Apple has until 15 January to do so, and faces a fine of 5 million euros (£4m) per week, up to a maximum of 50 million euros if it fails to comply.

In-app payments

“We applaud the ruling issued today by a Rotterdam Court affirming the ACM’s decision that Apple’s forced use of its in-app payment systems and other practices violate Dutch and EU competition law, and must be eliminated by January 15th,” Match group said in a statement.

Apple has faced challenges to its in-app payment policies in a  number of countries, including South Korea, which passed a law in August that requires major platforms like those of Apple and Google to allow third-party payment options.

Google has said it will allow such payments, but will charge a commission. Apple has not commented on its plans for compliance.

The company is facing proposed legislation in the EU and the US that could force it to change its in-app payment policies and other business practices.

The company defeated most aspects of a lawsuit by Epic Games over the issue, but a judge found Apple had violated California steering laws.

Apple appealed the ruling in October, and an appeals court stayed the decision.