Apple proposes 27 percent commission in Dutch app store dispute

From The Verge: Apple plans to charge developers of dating apps a 27 percent commission on any in-app purchases made via alternative payment systems in the Netherlands, the company has announced. The change comes in response to an order from Dutch competition regulator, the Authority for Consumers and Markets (ACM), which has demanded that Apple allow dating app developers — and only dating app developers — to use alternatives to Apple’s in-app payment system in the country. Twenty-seven percent represents only a 3 percent reduction compared to the 30 percent commission Apple typically charges for developers using its own payment system.

The announcement follows Google’s proposal to reduce its commission by 4 percent for developers using alternative payment systems in South Korea, Reuters reports. The proposal came in response to a law passed in the country last year. South Korea’s new rules are due to be fully fleshed out by March 15th, at which point it’ll be clear exactly what platform holders like Apple and Google will need to do to comply with the law.

According to Apple’s documentation, dating app developers in the Netherlands can now apply to use the alternative payment systems. They can choose between offering a third-party payment system within the app’s interface or linking out to an external website to complete a purchase. Apple has said it will also require dating app developers to submit a separate app binary in the Netherlands to enable the alternative payments.

Last week the Dutch regulator hit Apple with a €5 million (around $5.7 million) fine for failing to comply with its order — a fine that would repeat weekly until Apple complied. The regulator gave two reasons for fining Apple: firstly, that it hadn’t yet implemented the alternative payment systems, and secondly, that Apple had put “barriers” in place to dissuade developers from moving away from its first-party payment system, like forcing them to choose between using an alternative payment system outside of the app, or an alternative payment system within the app.

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