Following a court order, developers working on dating apps don’t have to use Apple’s in-app purchase system in the Netherlands. And because those purchases aren’t handled by Apple, the company doesn’t take its usual 30% cut on digital purchases. But developers who use a third-party payment system still have to pay a commission. And Apple plans to charge a… 27% commission.
In an update on its developer support site, Apple said it would collect 27% commission instead of its usual 30% on transactions made in dating apps that use alternative payment methods. Apple says the decreased commission excludes the value for collection and remittance of taxes that the company carries out.
„Consistent with the ACM’s order, dating apps that are granted an entitlement to link out or use a third-party in-app payment provider will pay Apple a commission on transactions. Apple will charge a 27% commission on the price paid by the user, net of value-added taxes. This is a reduced rate that excludes value related to payment processing and related activities. Developers will be responsible for the collection and remittance of any applicable taxes, such as the Netherlands’ value-added tax (VAT), for sales processed by a third-party payment provider.„
The details follow Apple’s announcement last month that it will comply with a Netherlands Authority for Consumers and Markets (ACM) ruling that compels the company to allow third-party payment services to pay for in-app purchases in dating apps.
Apple has warned that it will not be directly aware of purchases made using alternative methods, and will not be able to assist users with refunds, purchase history, subscription management, and other issues that it usually takes care of as part of its own in-app payments system.
As a result, developers who use the new entitlements will have to take on these additional responsibilities, and will be required to provide Apple with a monthly record of each sale of digital goods and content through the App Store within 15 calendar days of the end of Apple’s fiscal month.
Apple’s concessions came following a December ruling from the ACM that, by restricting dating apps from using third-party payment methods, Apple is engaging in an „abuse of market power.” The ACM threatened to fine Apple up to a maximum of 50 million euros per week ($57 million) if it did not allow dating apps to offer alternative payment options.
Despite agreeing to offer the entitlements, Apple is still appealing the ACM ruling, which it argues is not in the best interests of App Store users. Apple says it is „concerned these changes could compromise the user experience, and create new threats to user privacy and data security.”
This represents yet another threat for Apple’s in-app payment system. In South Korea, Apple agreed to allow third-party payment systems following a new law on digital payments. There are also several ongoing cases in the U.S. and Europe.
Apple wants to make it as difficult and expensive as possible to use a third-party payment system. Chances are most developers will just keep using Apple’s in-app purchase API.
“Developers of dating apps who want to continue using Apple’s in-app purchase system may do so and no further action is needed,” Apple writes.
But it feels like Apple is just buying time. The App Store remains under close antitrust scrutiny across various jurisdictions. Apple will find ways to circumvent the first court orders and pro-competition reforms. But regulators will likely get smarter if they really want to lower Apple’s commission on app developers.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
