Apple to Allow In-App Third-Party Payment Options for First Time in the Netherlands
Apple has announced that it will allow third-party payment options for in-app purchases for dating apps in the Netherlands, in the first ever concession of its kind.
In a message posted on its developer site late on Friday, Apple announced that it will comply with a Netherlands Authority for Consumers and Markets (ACM) ruling that compels the company to allow third-party payment services to pay for in-app purchases in dating apps. Dutch dating apps that link out to or use a third-party in-app payment provider will still need to pay a commission to Apple on transactions.
Recent orders from the Netherlands Authority for Consumers and Markets (ACM) will allow developers of dating apps on the App Store in the Netherlands to share additional payment processing options with users.
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.
To implement third-party payment options in Dutch dating apps, developers will need to use Apple's entitlements, but the company warned developers that this will involve additional responsibilities and pose a number of new risks:
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.
Apple added that it disagrees with the ACM ruling, believes it is "not in our users' best interest," and has appealed the decision to a higher court. Specifically, Apple explained that it is "concerned these changes could compromise the user experience, and create new threats to user privacy and data security."
Apple highlighted the benefits of its own payment system to developers, which continues to be available as an option for developers to use in Dutch dating apps:
Apple designed the App Store to be a safe and trusted place for people to discover and download apps. Apple's in-app purchase system, an integral part of our world-class commerce platform, offers people a private and secure user experience across apps and Apple devices, and makes it easy for them to manage their purchases and subscriptions for digital goods and services.
The order originated from a Dutch investigation started in 2019 that examined whether Apple's business practices amounted to an abuse of market power. The investigation included a complaint from Match Group, the owner of Tinder, which claimed that Apple's rules prevented it from communicating with its customers directly about payments.
The ACM said that Apple imposes "unreasonable conditions" by forbidding user choice about in-app purchase methods. Apple was warned that it had to allow dating apps to offer third-party payment options by Saturday, January 15 or face a fine of up to 50 million euros ($57 million). Apple said that it will provide further information about the mandated changes shortly.
Top Rated Comments
But there is not a law that eliminates all other commission fees or platform fees.
Apple can still collect a fee from developers of dating apps in the Netherlands.
Is 15%, 27%, or 30% too high? Is anything higher than 0% too high in your mind? Should platforms be forbidden to collect any platform fees or commission fees? At all?
What exactly do you want governments to "stop" here?
This kind of ruling will let similar scams take place out in the open without the unsuspecting having any kind of recourse in case they are scammed. Most people will be easily led to buy tokens outside of App Store and under the watchful eyes of Apple when developers make the tradeoff skews so much to one side. Except the hidden risk isn't explained to you until it's too late.
The security vs. freedom argument is really a red herring. It's always about finding the right balance between the two. Today it's dating apps. Tomorrow it'll be any app that incurs recurring payments. And before you know it, there is no longer any kind of policing in the App Store and you're out there to fend for yourself against pirates and looters (figuratively speaking).
I'd imagine most developers would still charge the same for IAP items even if they had the commission fees lowered.
But I'm happy to be wrong.
If the consumer wants Apple’s “protection” so badly, they’d be willing to pay 30% more for it.