Dutch Regulator Says Apple Still Not Compliant on Dating App Payment

Apple

Apple will likely be smacked with another fine next week for not complying with an order by Dutch antitrust watchdog Authority for Consumers and Markets to fully open its App Store in the Netherlands to rival forms of payment for dating apps, according to a Reuters report Friday (March 25).

ACM has hit Apple with 45 million euros ($49 million) in fines so far, broken into nine increments of 5 million euros each, since January, the report says.

Apple submitted a proposal to ACM this week in hopes of ending the fines, but the Dutch watchdog says the offer doesn’t fully comply with the order, according to the Reuters report.

Once the penalty hits 50 million euros, all future sanctions could be higher than the 5 million euros of the previous nine, according to ACM rules.

Apple requires developers to use its system and pay commissions of 15% to 30% on digital goods purchases. The company is facing additional scrutiny and criticism for its approach in other parts of the world.

ACM launched its investigation into whether Apple’s practices were tantamount to an abuse of its dominant market position in 2019, later reducing its focus to primarily dating apps, including Tinder owner Match Group Inc., the report says.

Apple has denied market abuse, but ACM says Apple must change its practice.

The European Commission, EU governments and EU lawmakers agreed Thursday to tougher sanctions that would mean Apple must open its App Store once the legislation takes hold in October.

Related: Apple Proposes Solution to Dating App Violations Amid Fines

ACM did not disclose the remedy Apple has proposed. Apple has maintained it has already complied with the ACM’s order, while the watchdog says it has not seen any change in Apple’s position.

The company had a Jan. 15 deadline to comply with the ACM. It missed that deadline and has been fined every week since then. Apple contends it has followed the ACM’s wishes by allowing dating app makers to submit a new apps with alternative payment methods enabled.

The company also said it still intends to charge a 27% commission on any in-app payments it doesn’t process. That’s down from the previous 30% fee. ACM has said Apple’s new payment terms for data apps are “unreasonable and create an additional barrier,” noting Apple “still does not meet the requirements.”