Apple’s App Store in Trouble with Dutch Watchdog
Apple is repeatedly getting into trouble with the Dutch watchdog, and it is the straight 10th week where the authorities have fined Apple. This fine comes as a result of missing third-party payment options for the subscribers of the dating applications. The non-compliance has costed $55 Million in penalties to Apple. It is known that Apple is taking corrective actions, which would result in compliance with the guidelines.
ACM issues a statement saying that it welcomes the step taken by Apple. The new proposal from Apple will help standardize the conditions for dating app provider who wishes to host their applications on the App Store. ACM also stated that it would submit the new conditions to market participants after the ACM received the definitive conditions from Apple. After that, ACM will take a call on whether Apple is compliant with ACM’s requirement of providing an alternative method of payment for the apps.
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It talks about the Netherlands watchdog continues to cash out as it fines Apple tenth time over App Store policy
After the discussion, if ACM concludes that Apple still doesn’t meet the ACM conditions, then ACM may impose another round of penalties on Apple. As per a source, the penalties on Apple will keep getting higher until Apple is compliant with the given standards. In February, ACM also mentioned that the information and roadmap provided by Apple for allowing alternative payments to dating apps in the Netherlands is not enough.
What we understand from the issue is the commission structure of Apple. As per the information available from public sources, Apple usually charges 30% as a commission for in-app purchases and subscriptions. Because of the alternative payment systems, the commission may go down, thus reducing the brand’s revenue and profits. It would be interesting to see how the new compliance shapes out and how it helps the developers or Apple shape the future of in-app purchases. One thing is sure ACM is in no mood to go lenient on Apple.