Apple gets another fine, goes to court

The Dutch Consumer & Market Authority rejects Apple arguments, keeps fine at 50 million euro

02.Oct.23 5:43 PM
By Abigail Richards
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The Dutch Consumer & Market Authority (Autoriteit Consument & Markt or ACM) has rejected Apple's objection to a fine of 50 million euros. The iPhone manufacturer is now turning to the courts in an attempt to avoid the penalty.

Apple states that it disagrees with the ACM's decision, "which reduces investment incentives and is not in the best interest of the privacy and data security of our users."

The iPhone manufacturer received the fine in 2022 because the company was found to have abused its market position, according to the regulator. Users of dating apps like Tinder, who wanted to purchase a subscription, were required to do so through Apple's payment system.

Makers of dating apps complained to the ACM because they wanted other parties to be able to process payments as well. Meanwhile, this is now possible: the ACM concluded last year that Apple complies with the rules.

The App Store is an important revenue source for Apple. For every euro that people spend on apps, 15 to 30 cents goes to Apple. If app developers allow users of their apps to pay through their own payment system, Apple cannot retain that fee.

Some app makers, including the developer of Pokémon GO, Niantic, offer users discounts when they pay directly to the app maker. This makes it cheaper for the user and leaves app developers with more in their pockets compared to when payments go through Apple.

Additionally, the companies behind dating apps not only complained about Apple but also about Google. In the Play Store, app makers are also not allowed to use any payment system other than that of the search giant. The ACM initiated an investigation into these complaints last year to see if there is also possible abuse of power.

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