Regulations and lawmakers throughout the world are looking into Apple’s practise of collecting 15 to 30 percent commission to app developers that use in-app payment systems.
Dutch competition regulators have now concluded that Apple has broken the country’s competition regulations. Apple’s ‘App Store Payments’ regulations must be revised, according to a court decision.
An inquiry by the Netherlands Authority for Consumers and Markets (ACM) began in 2019, according to a Reuters story.
Apple’s behaviour was investigated to see if it resulted in market abuse.
To focus on only dating applications linked to the App Store and using in-app payment methods, this analysis was initially conducted. Tinder’s Owner Match Group is also included in this.
Apple has filed an appeal against the ACM’s decision, saying that it disagrees with it.
According to this report, Apple does not hold the top spot in the Netherlands’ software distribution market.
According to Apple, it has committed significant resources to assisting dating app developers in gaining a foothold in the App Store and expanding their user base. ACM had ruled Apple’s conduct to be anti-competitive, according to a report by Reuters in October.
Apple has been found to have broken competition laws by the regulators. App Store conditions that unfairly target dating app developers have been mandated by a court.
Apple has also been forced to allow dating app developers to utilise alternative payment systems, such as PayPal and Google Wallet.
It is possible that the corporation might be fined up to 50 million euros if it does not follow the orders (about Rs 425 crore). The deadline for Apple to adopt the modifications has been set for January 15.
The Rotterdam Court’s decision to uphold the ACM’s decision in this case is also welcomed by Match Group, which states that the compulsory adoption of Apple’s in-app payment mechanism and other activities violate Dutch and EU competition laws. It is expected to be completed by the 15th of January.
A severe setback from the Netherlands’ top regulator comes at a time when Apple has already lost a case related to a South Korean legislation prohibiting.. Third-party payment services must be allowed by major app platform providers in South Korea, such as Apple and Google.
Even though Google has said it will enable third-party payment systems, a commission fee will remain. It’s unclear what Apple’s ambitions are with regard to Korea.
The European Union and the United States are also considering measures against Apple. An in-app payment policy will have to be changed as a result of this regulation.
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