EU Official: Apple Choosing Fines Over Compliance

Big Tech companies like Apple are choosing to pay fines in lieu of complying with regulations they don’t agree with, the European Union’s lead antitrust official said Tuesday (Feb. 22).

“Some gatekeepers may be tempted to play for time or try to circumvent the rules,” said Margrethe Vestager, speaking at a U.S. awards ceremony, according to published reports.

“Apple’s conduct in the Netherlands these days may be an example,” added Vestager, the European Commission’s vice president and digital chief.

She said the company “essentially prefers paying periodic fines rather than comply” with an antitrust order issued in the Netherlands to offer alternative app payments. Vestager said a new law in the EU that curbs such behavior should help remedy the issue.

Her comments come as Apple is fighting a multifront war over fees for downloads and content on its products.

Read more: Dutch Antitrust Regulator Fines Apple Another $5M Over Payment Methods

Over the past five weeks, Apple has been fined $28 million in the Netherlands over the issue of access to non-Apple payments for subscriptions to dating apps.

The Authority for Consumers and Markets (ACM) said Apple abused its dominant market position by not allowing software applications in the Netherlands to use any other payment modes. The company had a Jan. 15 deadlines to comply with the ACM, but didn’t do so.

Apple argues it had complied with the ACM ruling by letting dating app makers submit a new app with alternative payment methods enabled. The company also says it still plans to charge a 27% commission on any in-app payments it doesn’t process — a slight drop from the 30% it charges now.

The ACM has said Apple’s non-compliance in this case goes beyond the fees. The regulator said the company’s updated conditions still harm dating app providers by forcing them to develop a new app and submit it to the Apple App Store, which means added costs and more time and effort spent updating users about the change.