Apple to offer Dutch dating apps payment alternative after competition ruling

Nieuws Mobiel Nederland 17 JAN 2022
Apple to offer Dutch dating apps payment alternative after competition ruling

Apple has agreed to allow alternative payment options for dating apps on its App Store in the Netherlands, following the threat of a large fine from the competition regulator ACM for abuse of Apple's dominant position on the app store market. At the same time, the company is pursuing an appeal against the regulator's decision in court in Rotterdam.

More information will be provided to developers soon on the new options. The publishers will be able to use payment methods other than Apple's own In-App Payment (IAP), which to date has been mandatory for all apps on the store, including a commission. Apple has changed its terms and conditions for dating apps, allowing the publishers to link to other payment services or integrate a third-party system in their apps. Developers need to provide the necessary code, based on StoreKit APIs, and limit the changes to the Dutch store.

The ACM started its investigation into Apple in 2019 and chose to focus on dating apps. Users of these apps expect to be able to reach a broad audience, including people on Android devices, and certain paid functions, such as likes, can be used only in the app to meet people.

The app store terms give Apple a much too strong position vis-a-vis developers, the regulator found. Furthermore, Apple is capable of offering different payment options, and subscriptions for other services such as video and media apps already have alternatives.

In December, Apple lost an initial request for an injunction at the Rotterdam court but obtained a delay until 15 January to implement the ruling. The ACM argued that customers of a dating app are in a relationship with Apple when it comes to payment, and not the app publisher. According to the court ruling, Apple appears to not question this, saying customers are best off with its own IAP system.

The dating app publishers Meetic and Match Group both participated in the case. A Match spokesperson welcomed the court ruling, "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". The company called on other regulators in the EU and elsewhere to "enforce or update competition laws to create a fair app ecosystem that prevents Apple from further harming developers and consumers alike".

Apple faces fines of up to EUR 5 million a week or EUR 50 million in total from the ACM if it does not implement the changes. The ACM's decision dates from August 2021 but was only made public in December following the court hearing.

Related Articles