Another regulatory stumbling block for Apple: the iPhone maker agreed this weekend to adjustments to its App Store in the Netherlands aimed at dating applications, allowing Dutch dating app developers to accept non-Apple based payments (via Reuters).
Apple was found in violation of national competition rules by the Netherlands Authority for Consumers and Markets (ACM) in December, ordering it to change “unreasonable limitations” in the App Store that apply to dating app developers.
Apple had been threatened with a monetary penalty if it did not make modifications before the weekend.
Last month, the tech giant went to court to seek an injunction against the ruling, arguing that the regulator should not publish its findings and that the order should be temporarily suspended.
The court, however, dismissed Apple’s objections in December, giving the corporation until January 15 to comply with the decision allowing dating app providers to offer alternative payment alternatives to their users.
“The issue concerns Apple’s requirements for dating app providers that seek to offer digital content (such as’superlikes’ and ‘boosts’) in their apps.” Consumer payments must be made to Apple as a so-called commission agent of the dating app providers using special software (the IAP API) that Apple has put into its iOS operating system, among other things. At the time, the Rotterdam Court noted [translated from Dutch using machine translation]: “The dating app providers may not use any other payment settlement method and may not allude to another payment method in their apps.”
“With regard to this aspect of the conditions, the preliminary relief judge agrees with ACM that Apple is abusing its dominant position in the market for app store services for dating app providers by imposing these conditions.” Apple’s claims that it would not have an economic monopoly and that the requirements are required are unconvincing.”
Apple alerted developers of the change in how it manages its store in the Netherlands in a statement late Friday, ahead of the court-adjusted deadline to comply.
It also stated that it will appeal the ACM decision, arguing that the changes risk deteriorating the user experience and posing privacy and security threats – Apple writing:
““Because we do not believe these orders are in our users’ best interests, we have appealed the ACM’s decision to a higher court. We’re concerned these changes could compromise the user experience, and create new threats to user privacy and data security. In the meantime, we are obligated to make the mandated changes which we’re launching today and we will provide further information shortly.”on as soon as possible.”
In the statement, Apple also goes out of its way to warn local developers that including non-Apple payment options in their apps will result in a reduction in the services Apple can provide to their users — while also emphasizing that app makers can continue to use Apple’s in-app payment system without making any changes to their business models.
The relevant text is as follows:
“To comply with the ACM’s order, we’re introducing two optional new entitlements exclusively applicable to dating apps on the Netherlands App Store that provide additional payment processing options for users. Dating app developers who want to continue using Apple’s in-app purchase system may do so and no further action is needed. Before considering applying for one of these entitlements, it’s important to understand that some App Store features that you may use won’t be available to your customers, in part because we cannot validate the security and safety of payments that take place outside of the App Store’s private and secure payment system. Because Apple will not be directly aware of purchases made using alternative methods, Apple will not be able to assist users with refunds, purchase history, subscription management, and other issues encountered when purchasing digital goods and services through these alternative purchasing methods. You will be responsible for addressing such issues with customers.”
An Apple spokesman told TechCrunch that the restrictions on local dating apps that accept non-Apple payment methods for in-app purchases apply to refunds, subscription management, and other services — pointing to the section of the statement that emphasizes how app users will be on their own if they buy digital goods from a developer who uses non-Apple infrastructure.
Apple highlights the following in its extra instructions to local dating app developers:
“It will be your responsibility to assist your users if questions or issues arise stemming from alternative payment options. Because Apple will not be directly aware of purchases made using alternative methods, Apple will not be able to assist users with refunds, payment history, subscription management, and other issues encountered when purchasing digital goods and services through these alternative purchasing methods. You will be responsible for addressing such issues with customers.”
Apple’s spokesman acknowledged that developers who don’t want to utilize Apple’s In-App Purchase (IAP) technology can opt out or use a third-party payment method within the app, pointing to more information the company has supplied developers here.
However, it does not appear that local developers who abandon Apple’s IAP technology will be able to receive completely commission-free purchases.
Apple also mentions [emphasis ours] in information provided to developers:
“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.”
