Dutch Antitrust Watchdog Nears Draft Decision in App Store Probe

The Netherlands Authority for Consumers and Markets, or ACM for short, is reportedly nearing a draft decision in its investigation into Apple over rules that require developers to use its in-app payment system, which charges commissions of between 15% and 30%.

app store blue banner
According to Reuters, the ACM revealed that the draft decision was nearing completion in letters sent this month to some of the developers involved in the case. However, the letter didn't divulge how the ACM would rule, nor when its decision will be finalized.

According to the letter, the regulator is also scrutinizing Apple rules that bar developers from telling users about cheaper payment alternatives outside of the app.

"It's not just that Apple is inflicting economic harm," said David Heinemeier Hansson, co-founder of software firm Basecamp and one of those who received the letter. "Apple is essentially giving us a gag order."

The development comes almost two years since ACM began investigating the App Store to determine whether Apple abuses its position by, for example, giving preferential treatment to its own apps.

ACM launched the investigation after completing a market study that explored the influence of app stores. For numerous apps, the watchdog found that no realistic alternatives to the ‌‌App Store‌‌ and Play Store exist, potentially giving Apple and Google the opportunity to set unfair conditions.

Apple is facing several antitrust investigations into its ‌App Store‌ practices, including a legal dispute with Epic Games over in-app transaction fees and an ongoing probe by the European Commission, prompted by a complaint by Spotify that accused Apple of acting as "both a player and referee to deliberately disadvantage other app developers."

If the ACM issues a decision soon, Reuters speculates that it could become the first antitrust authority to rule on Apple's app-store payment policies which would set a precedent that could influence other ongoing investigations.

A separate ongoing ACM probe is investigating contactless platforms on smartphones and the access that payment apps have to NFC capabilities.

According to the ACM, the software that's on some smartphones "only allows the developer's own payment app to connect to NFC communication," preventing third-party payment apps from also being able to use NFC capabilities.

On iPhones, Apple Pay is the only payment method able to use NFC. Apple does not permit other financial apps to use NFC, which has resulted in disputes with some banks and financial institutions.

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
icloud private relay outage

iCloud Private Relay Experiencing Outage

Thursday July 25, 2024 3:18 pm PDT by
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...

Top Rated Comments

deevey Avatar
45 months ago

This one seems quite reasonable. Not allowing other payment options is one thing, not being able to promote "out of App Store" possibilities another.
Alright, say if you have a shop that sells Apple products.

By that rationale, Apple should be able to advertise in YOUR shop that customers can buy those products cheaper from them directly and you must let them do that ?
Score: 5 Votes (Like | Disagree)
subi257 Avatar
45 months ago

Alright, say if you have a shop that sells Apple products.

By that rationale, Apple should be able to advertise in YOUR shop that customers can buy those products cheaper from them directly and you must let them do that ?
Exactly, You as a store owner would tell Apple get the F out! That applies to any and all sales, I have a supermarket and on the shelves above every item, I will have a sign telling you where to get it for a lower cost.

It costs Apple....or Google, or whatever app store money to host the apps. Server space, utilities to run servers, engineers to maintain them, etc. Why should I give that away for free as a for profit business. I could be wrong, but if it was not for Apple and the app store in he first place, more than half of these developers would not exist.
Score: 5 Votes (Like | Disagree)
contacos Avatar
45 months ago

Alright, say if you have a shop that sells Apple products.

By that rationale, Apple should be able to advertise in YOUR shop that customers can buy those products cheaper from them directly and you must let them do that ?
That’s redundant because Apple will never be the cheaper option. Also there isn’t even an option to go buy elsewhere with the AppStore being the only source. You can buy a game for your Nintendo at Walmart but you can also decide to buy it more expensive on the Nintendo Online Store. Apple doesn’t even give you the option


Exactly, You as a store owner would tell Apple get the F out! That applies to any and all sales, I have a supermarket and on the shelves above every item, I will have a sign telling you where to get it for a lower cost.

It costs Apple....or Google, or whatever app store money to host the apps. Server space, utilities to run servers, engineers to maintain them, etc. Why should I give that away for free as a for profit business. I could be wrong, but if it was not for Apple and the app store in he first place, more than half of these developers would not exist.
I thought that’s what the 99 dollars per year is already for?


If Apple cannot generate revenue from the App Store then what is the business motivation for having it? Is the App Store to be regulated into a free service for developers that Apple is required to provide and lose money on? Apple gets nothing for its efforts? It certainly looks that way. You know it wasn’t that long ago that developers had to fend for themselves and do all of the marketing and rely on word of mouth to get traction for their softwares. How many small time developers went belly up because they didn’t have the resources to promote their products?
Yes and no. Apple needs developers to develop apps just as much as the devs need Apple. Without apps, iOS would have become another Windows Mobile and the iPhone less interesting. Imagine if FB stopped offering FB, Instagram and WhatsApp on iOs
Score: 3 Votes (Like | Disagree)
Wildkraut Avatar
45 months ago

Apple has been a closed ecosystem from day one. As a developer if you didn't see that up front you are either blind or nieve....OR...just plain greedy. That closed app store has made a lot of money for a lot of developers. I can't even begin to count how many .99 apps I bought...knowing that it's most like junk, or ehh, but an .99 who cares. If globally, 10,000 people did the same and the developers get .666 on the dollar that means they just made $6,666.00
Sounds like you love to pay 0.99 for junk!
Mind if i sell you a bit of garbage out of our trash can?
Score: 3 Votes (Like | Disagree)
Stratus Fear Avatar
45 months ago

This one seems quite reasonable. Not allowing other payment options is one thing, not being able to promote "out of App Store" possibilities another.
Normally I'm on Apple's side on a lot of their platform decisions, but I agree, this probably isn't unreasonable. In my opinion, if Apple really wants developers to use IAP, even for services Apple largely is not providing in a third-party app, e.g. media content delivery related transactions, like ebooks and music/video subscriptions, I don't see why they can't compromise on their 30% for certain categories such as those and make the fee similar to what credit card processors charge (something like 1%-3%). They'd still have the massive 30% cut from traditional IAP like DLCs for game apps and other stuff where content delivery is solely from the App Store. Seems like that could be a compromise that makes most people happy.
Score: 2 Votes (Like | Disagree)
jonblatho Avatar
45 months ago

I know exactly what you said. If I were Apple, I wouldn't kow-tow to this directly. What Apple does, however, is anybody's guess.
If you can’t see that the hammer of regulation is coming eventually if Apple keeps marching down this path, I can’t help you.
Score: 2 Votes (Like | Disagree)