Apple’s payment practices requiring subscription-forward apps to exclusively accept payments through Apple Pay violated antitrust laws, according to a Dutch regulator ruling reported by Bloomberg on Tuesday. The Dutch Authority for Consumers & Markets ruled that Apple violated European Union antitrust laws by unfairly targeting apps that offer subscription services.
The Dutch regulator reportedly cited Match Group Inc’s dating app, Tinder, as one subscription platform that was unfairly targeted by Apple, Bloomberg reported. Apple’s payment requirements meant companies like Match Group were required to pay higher commission rates on app sales. Apple was fined €50 million ($53.2 million) for failing to allow dating apps to use third-party payment systems or offer different payment methods.
The company also faces a private antitrust class-action lawsuit by payment card issuers in the U.S. who claim Apple is enforcing a monopoly over the local market for tap-and-pay wallets on iPhones, iPads, and Apple Watches. The complaint argues that banks and credit unions pay an excess of at least $1 billion in fees, but Apple claimed in a motion to dismiss that it charges “nominal” fees to smaller credit card companies.
Apple has likewise argued that it reduced in-app sale commission in the Netherlands from 30% to 27%, but Dutch regulators reportedly remain unimpressed, arguing that the offer to reduce the fees isn’t enough.
This is the latest development in an ongoing dispute between Apple and European regulators who argue that the company is abusing its market power by charging a commission. Apple was accused of breaking antitrust laws in 2021 by being a so-called “gatekeeper” for in-store apps that generally resulted in a 30% price hike for customers.
Apple did not respond to Gizmodo’s request for comment.
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November 01, 2023 at 12:40AM
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Apple's Payment Practices Out of Control, Dutch Regulators Say - Gizmodo
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