Apple Cuts Fees for Dating Apps in Dutch Antitrust Response

(Bloomberg) —

Apple Inc. set out reduced fees for dating apps targeting Dutch users that can now avoid its payment system, in an effort to dodge extra antitrust fines.

To comply with a Dutch antitrust order, Apple will allow Match Group Inc. and other dating apps to use an alternative to its App Store payments, it said in an update on its website for developers. The apps must hand Apple 27% of what users pay, three percentage points less than a standard fee.

Apple usually requires developers to use its own payment system, which helps it enforce a commission for apps on its platform. That tight control over app payments has attracted lawsuits and antitrust scrutiny, often focusing on the Apple’s refusal to allow developers steer users to other payment methods. 

The company’s move may limit potential fines of as much as 50 million euros ($57.3 million) from the Dutch Authority for Consumers & Markets. The watchdog last month fined Apple 5 million euros for failing to open up payment options for developers, with extra penalties possible if it failed to comply with the antitrust order. Bowing to the regulator’s pressure, Apple on Jan. 15 announced its first ever move to allow outside payments within App Store apps.

Apple Will Allow Outside Payments in Dutch Dating Apps 

While the Dutch fine was a fraction of Apple’s $365.8 billion-annual revenue, the decision was a sign regulators are hardening their resolve against the U.S. firm’s payment methods. 

Apple will require developers to collect and pay any additional taxes on the payments and to report to Apple every month on sales of digital services and content on the App store. It will have audit rights to check the accuracy of a developer’s record.

“Failure to pay Apple’s commission could result in the offset of proceeds owed to you in other markets, removal of your app from the App Store or removal from the Apple Developer program,” it warned.

(Updates with additional extra Apple comment from sixth paragraph)

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