For nine weeks in a row, the Netherlands Authority for Consumers & Markets has imposed a fine of 5 million euros on Apple to force the tech giant to adjust the payment conditions in dating apps. The counter is already at 45 million euros, but Apple does not budge.
Or rather: so far Apple has given the national competition regulator a big middle finger in the dispute that arose after a complaint from the dating app Tinder at ACM. The imposed penalty has already risen to 45 million euros after nine weeks.
Apple requires consumers to make payments to the dating app through Apple and charges up to 30 percent commission. That approach is a gold mine for Apple. Google also uses this method. In recent years, the large tech companies have come under heavy fire because of the monopolists’ revenue model because it would disadvantage app builders and consumers.
Again
Competition authority ACM demands from Apple that the dating apps may also use other payment methods. Apple adjusted the conditions somewhat, but according to ACM insufficient. Next weekend, ACM will decide whether Apple’s latest adjustment proposals are acceptable. If this is not the case, ACM can impose a further penalty of 5 million euros.
ACM does not want to discuss the question of what other legal remedies are still available to bring Apple to its knees.
Huge amount
50 million euros is a huge amount. By way of comparison: ACM imposed a total of 65 million new fines throughout 2021. For Apple, which has a market value of more than 2.5 trillion (12 zeros) euros, 50 million euros is peanuts. The company pays for that in literally an hour.
But the issue is about much more. Apple and also competitor Google earn tens of billions of euros with their app stores. If Apple gives in to the Tinder case, many other companies with app payments via Apple will ring the bell at ACM. And in other countries too, the app builders will then go to the competition authority to test the market power of the ‘big tech’ to deal with..
‘Apple tax’
Last month, tech entrepreneur Alexander Klöpping’s new App Stores Claims foundation announced that Apple and Google are being sued over the ‘Apple tax’ on app store purchases. As a result, consumers would have systematically paid 30 percent too much and the foundation wants that money back.
The two tech firms respond with all possible legal action. With small steps they try to show their good will. They lowered the commission for small businesses to 15 percent, but the vast majority still have to pay 30 percent. Google announced this week that it was “experimenting” with billing directly from some apps to users. Music service Spotify would be the first company to be allowed to experiment, but nothing is known about the conditions and time.
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