App commissions too high: Netherlands gives Apple more time to make changes

Dutch competition authorities have forced Apple to change controversial app store regulations at an early stage. However, the iPhone company does not now have to immediately reduce the commissions on in-app purchases in dating apps, which have been declared too high –, despite a court order that has already been issued.

Due to the ongoing talks between Apple and the EU Commission, the company has been given more time to adjust its fee model for apps, according to the Authority for Consumers and Markets (ACM). The regulators want to prevent "multiple parallel conversations on the same topic".

Dispute over Apple's commission on in-app purchases

The EU Commission has already forced Apple to revise its fee model for the App Store by imposing a heavy fine and threatening to impose further severe fines. By the end of the year, the company plans to establish uniform rules for the commissions that app developers have to pay when selling digital content. The latest proposal is significantly more complex than the previous models and includes – a "Core Technology Commission" in addition to other fees – , which replaces the much-discussed "Core Technology Fee". Ultimately, apps will probably have to cede up to 20 percent of their revenue from digital content to Apple – instead of up to 30 percent previously.

Long before the Digital Markets Act, the Dutch ACM had already forced Apple to allow dating apps to integrate external purchasing options –, which was previously strictly prohibited in the App Store. However, Apple continued to charge a high commission for external purchases and was therefore also abusing its market power, the District Court of Rotterdam confirmed in June and ordered an immediate change to the fee model.

Apple is no longer allowed to charge dating apps a high commission, while most other apps do not have to pay any commission at all, explains the ACM. Apple only charges commission on digital content. In contrast, physical goods and services may be sold directly in apps without Apple charging a commission.

Apple gets a little more time

However, the ACM has now decided not to directly demand the implementation of the order and therefore not to impose a fine for the time being. This gives Apple time to adjust its fee model in consultation with the EU Commission. This also gives the ACM time to check whether Apple's upcoming fee model no longer constitutes an abuse of a dominant market position.

(lbe)