The Netherlands’ top competition regulator said Apple Inc (AAPL.O) violated its competition laws on Friday and ordered the iPhone maker to adjust its App Store payment practices.
Regulators and lawmakers worldwide have questioned Apple’s practice of mandating app developers to utilize its in-app payment system and pay commissions of 15% to 30% on digital goods purchases.
In 2019, the Netherlands’ Authority for Consumers and Markets (ACM) initiated an investigation In 2019, the Netherlands’ Authority for Consumers and Markets (ACM) initiated an investigation into whether Apple’s conduct amounted to an abuse of a dominant market position. However, it was later narrowed in scope to focus solely on dating apps, including Tinder’s parent company Match Group Inc. (MTCH.O).
“We disagree with the order issued by the ACM and have filed an appeal. Apple does not have a dominant position in the market for software distribution in the Netherlands, has invested tremendous resources helping developers of dating apps reach customers and thrive on the App Store,”Apple said in a statement
According to Reuters, the ACM considered Apple’s methods anti-competitive and ordered adjustments, although the decision was not made public until Friday.
According to the regulator’s decision, Apple was found to have broken competition regulations. It has ordered Apple to change the unfair circumstances that apply to dating-app suppliers in its App Store.
Apple must now allow dating-app developers to utilize alternate payment mechanisms. If the corporation does not comply, it might face a fine of up to 50 million euros ($56.6 million).
According to a statement, Apple has until January 15 to execute the adjustments.
“We applaud the ruling issued today by a Rotterdam Court affirming the ACM’s decision that Apple’s forced use of its in-app payment systems and other practices violate Dutch and EU competition law, and must be eliminated by January 15,”said Match group in an email statement.