Apple's App Charges Violate EU Antitrust Law, Dutch Agency Says
Published on November 01, 2023 at 01:31AM
Apple could be forced to scale back its App Store fees for developers after one of the European Union's antitrust watchdogs said its commissions violate the bloc's rules. From a report: In the latest twist in a long-running clash between the Dutch Authority for Consumers & Markets and the US tech giant, officials ruled that Apple's commission on certain app subscriptions are an abuse of the company's market power. In a confidential decision seen by Bloomberg, the Dutch regulator said Apple's rules unfairly target companies that offer subscription services, such as Match Group's dating app Tinder, which has to pay high commission rates on app sales, unlike ones that don't have paid digital content. Apple harms such companies "by charging them an additional and inexplicably higher fee," according to the Dutch decision, which was sent in July. Apple had earlier offered to reduce app sale commission in the Netherlands from 30% to 27%, but the ACM's confidential findings state this offer doesn't go far enough. The decision could pave the wave for greater antitrust scrutiny across the 27-nation EU on the fairness of Apple's fee structure for different apps. The European Commission in Brussels is already investigating how Apple restricts apps from informing users of cheaper subscriptions outside the app store.
Published on November 01, 2023 at 01:31AM
Apple could be forced to scale back its App Store fees for developers after one of the European Union's antitrust watchdogs said its commissions violate the bloc's rules. From a report: In the latest twist in a long-running clash between the Dutch Authority for Consumers & Markets and the US tech giant, officials ruled that Apple's commission on certain app subscriptions are an abuse of the company's market power. In a confidential decision seen by Bloomberg, the Dutch regulator said Apple's rules unfairly target companies that offer subscription services, such as Match Group's dating app Tinder, which has to pay high commission rates on app sales, unlike ones that don't have paid digital content. Apple harms such companies "by charging them an additional and inexplicably higher fee," according to the Dutch decision, which was sent in July. Apple had earlier offered to reduce app sale commission in the Netherlands from 30% to 27%, but the ACM's confidential findings state this offer doesn't go far enough. The decision could pave the wave for greater antitrust scrutiny across the 27-nation EU on the fairness of Apple's fee structure for different apps. The European Commission in Brussels is already investigating how Apple restricts apps from informing users of cheaper subscriptions outside the app store.
Read more of this story at Slashdot.
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