Apple Fined up to $57M by Dutch Regulators for Skirting Payment System Rules

A Dutch regulator has fined Apple Inc. up to 50 million euros ($57 million) for not letting rival payment systems tie in to dating app providers, according to a Bloomberg report Monday (Jan. 24).

The hefty fine, which is set to be paid in weekly installments of 5 million euros ($5.7 million) every week, might show that global tech watchdogs are taking a harder stance against Apple for its payment method practices, the report says.

“Apple has raised several barriers for dating-app providers to the use of third-party payment systems,” a move that runs counter to the policies of the Netherlands Authority for Consumers and Markets (ACM), according to a statement on ACM’s website.

ACM had told Apple to let dating app developers and owners give their users other payment systems either next to, or instead of, Apple’s payment system, no later than Jan. 15. Apple promised compliance, but on the day of ACM’s deadline, it vowed to appeal the decision anyway.

Apple has run afoul of regulators in many countries around the world for its policy of steering users toward its own payment method at the expense of competitors, per the report. As a result of its stance, the company has been part of a number of lawsuits and antitrust investigations.

Apple charges commissions as high as 30% on some app subscriptions, although the tech giant reduced the fees for smaller developers last year.

“Apple seemingly forces app providers to make a choice: either refer to payment systems outside of the app or to an alternative payment system,” ACM said in its statement. “That is not allowed. Providers must be able to choose both options.”

Related: Apple to Follow Dutch Rules on Allowing Third-Party Dating App Payments

Last week, Apple said it would release two “entitlements” exclusively for the Netherlands App Store, but developers using outside payments will have to submit separate, Netherlands-specific versions of their apps, according to an Apple developer support page.

Apple will still be collecting revenue shares, which has been a point of contention in the past by governments and developers. The company says most developers selling dating apps aren’t based in the Netherlands, so the change wouldn’t benefit the local economy.

Apple also said it won’t be responsible for third-party purchase methods when it offers the third-party app payment option.