Dutch regulator ACM orders Apple to change in-app payment policy - report

News Broadband Global 7 OCT 2021
Dutch regulator ACM orders Apple to change in-app payment policy - report

The Dutch competition regulator said Apple’s rules requiring software developers to use its in-app payment system are anti-competitive, Reuters reported, citing sources close to the matter. The ACM has not imposed a fine against Apple, but ordered the company change its in-app payment system. Apple requires app developers to exclusively use its payment system, with commissions of 15-20 percent.  

The ACM started its investigation in 2019, after starting a study on the mobile app stores market, looking to see if Apple was in practice abusing its dominant market position. The probe was later reduced in scope to focus primarily on dating market apps. Match Group, the owner of dating service Tinder, said Apple's rules were hindering it from direct communications with its customers about payments. 

The sources noted Apple has asked the Rotterdam District Court for an injunction to block publication of the ruling during its appeal. A court spokesman confirmed the existence of the case to block publication, but could not say when a decision is expected. The proceedings are not open to the press or public. Apple was not immediately available to comment on the report. The company has argued its app store rules ensure security and privacy for its users.

An ACM spokesperson has declined to comment on the report, saying that the matter is currently under legal review. The regulator has said it expects to publish its decision soon. ACM board member Henk Don told Telecompaper that app providers are increasingly dependent on Apple and Google (Google Play) for offering apps to users. After hearing from different parties that Apple was abusing its position in the App Store, the regulator felt it needed to follow up on its investigation, based on competition rules.

Match declined to comment. 

Apple facing challenges about its app-store practices in many countries

The European Commission launched an investigation in 2020 parallel to the Dutch probe, but focused on whether app store rules favour Apple apps when there are competing products, such as Apple Music versus Spotify. Apple said it would lower the rate for smaller publishers. 

A US judge last month ordered Apple to make it easier for apps to promote alternative payment systems. Plaintiff Epic Games, the maker of "Fortnite", is appealing, saying the decision does not go far enough.  

South Korea has enacted a law barring app store operators from forcing developers to use their official payment systems. Apple and Google are due to respond this month on how they will comply.

Categories:

Regions:

Countries:

Related Articles