Apple detailed how dating app developers in the Netherlands may bypass Apple’s in-app payment mechanisms on Friday, a carefully awaited move by the iPhone manufacturer in the wake of worldwide antitrust worries about its dominance over the mobile app market.
Apple has long required developers to utilize its in-app payment system, which costs up to 30%, which some developers, such as Tinder owner Match Group, have said is excessive. Last year, the Dutch Authority for Consumers and Markets (ACM) found that Apple’s regulations in the dating app market breached Dutch competition laws and ordered Apple to enable those developers to use third-party payment processors.
Investors are keeping a close eye on developments in the Dutch antitrust lawsuit to see how they would affect Apple’s App Store sales, which account for the majority of the company’s $68.4 billion (approximately Rs. 5,347,30 crore) services business.
According to the guidelines, dating app developers will still be required to pay Apple commissions for transactions made outside of its in-app payment system, albeit they will get a small discount. Apple had previously said that developers who paid a 30% commission would owe the company a 27 per cent charge.
However, when specific requirements are met, such as keeping subscribers for more than a year, some developers already pay Apple a lesser 15 per cent commission rate.
Apple’s earlier regulations were unclear on whether or not those developers would get a discount if they used third-party payment providers. Apple said on Friday that when such developers use third-party payment systems, they would be charged a 12% fee.
Apple also announced on Friday that Dutch regulators had enforced modifications to how applications appear when third-party payments are used.
Apple’s system will display a message informing consumers that they must contact the developer if they have payment issues, such as requesting a refund. Apple had planned to add a button that would enable customers to opt out of utilizing the third-party payment option after being warned. Still, the iPhone manufacturer announced Friday that Dutch authorities had rejected the switch.
In a blog post, Apple said, “We don’t feel some of these modifications are in the best interests of our customers’ privacy or data security.” “As we have said, we disagree with the ACM’s first ruling and have filed an appeal.”