Dutch Apple Again
In our note of 01/26/2022, we mentioned that the Netherlands Authority for Consumers and Markets published an order requiring Apple (AAPL) to “adjust the unreasonable conditions in its App Store that apply to dating-app providers”, essentially forcing Apple to adjust the App Store policy to allow developers to offer alternative payment systems that give choices to subscribers, rather than forcing them to use the App Store system. The ACM went further in that it required Apple to adjust the system within 60 days or it would be fined €5m per week, up to a maximum of €50m. Apple did make some attempts to comply with the ruling while noting that they were being obligated to make such changes, although they have implemented nothing more than a form that allowed developers to express interest in using an alternative payment system, which does not seem to have assuaged the wrath of the ACM, especially as Apple only provides for a choice between in-house or external payment systems and not both as the law directs.
Since then, the Dutch ATC has fined Apple 5m€ four times as of this week, as they consider Apple’s changes to be deficient, which still levies a 27% ‘tax’ payments on payments made outside of the App Store. Apple claimed in mid-January that it had complied with the ACM’s wishes, although what they did was very limited, focused only on dating apps, and did not actually make any changes, only indicating that it would eventually. Apple seems to have taken the tact that it is better to fight than give in in the Netherlands and is going to appeal the court decision that the ACM ruling is based on, alleging that any changes to the current system would pose a security risk to users, communities, economies, businesses, and families, a hard case to prove. In the interim the ACM can continue to levy fines until the 50m€ cap is reached.
Since then, the Dutch ATC has fined Apple 5m€ four times as of this week, as they consider Apple’s changes to be deficient, which still levies a 27% ‘tax’ payments on payments made outside of the App Store. Apple claimed in mid-January that it had complied with the ACM’s wishes, although what they did was very limited, focused only on dating apps, and did not actually make any changes, only indicating that it would eventually. Apple seems to have taken the tact that it is better to fight than give in in the Netherlands and is going to appeal the court decision that the ACM ruling is based on, alleging that any changes to the current system would pose a security risk to users, communities, economies, businesses, and families, a hard case to prove. In the interim the ACM can continue to levy fines until the 50m€ cap is reached.
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