Apple to Collect 27% Commission on Third-Party App Payment Systems in the Netherlands

Apple says it will take 27% commission on purchases made in dating apps through third-party payment options in the Netherlands, in compliance with a Dutch regulatory ruling.

iOS App Store General Feature JoeBlue
In an update on its developer support site, Apple said it would collect 27% commission instead of its usual 30% on transactions made in dating apps that use alternative payment methods. Apple says the decreased commission excludes the value for collection and remittance of taxes that the company carries out.

Consistent with the ACM's order, dating apps that are granted an entitlement to link out or use a third-party in-app payment provider will pay Apple a commission on transactions. Apple will charge a 27% commission on the price paid by the user, net of value-added taxes. This is a reduced rate that excludes value related to payment processing and related activities. Developers will be responsible for the collection and remittance of any applicable taxes, such as the Netherlands' value-added tax (VAT), for sales processed by a third-party payment provider.

The details follow Apple's announcement last month 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.

Apple has warned that it will not be directly aware of purchases made using alternative methods, and will not be able to assist users with refunds, purchase history, subscription management, and other issues that it usually takes care of as part of its own in-app payments system.

As a result, developers who use the new entitlements will have to take on these additional responsibilities, and will be required to provide Apple with a monthly record of each sale of digital goods and content through the App Store within 15 calendar days of the end of Apple's fiscal month.

Apple's concessions came following a December ruling from the ACM that, by restricting dating apps from using third-party payment methods, Apple is engaging in an "abuse of market power." The ACM threatened to fine Apple up to a maximum of 50 million euros per week ($57 million) if it did not allow dating apps to offer alternative payment options.

Despite agreeing to offer the entitlements, Apple is still appealing the ACM ruling, which it argues is not in the best interests of ‌App Store‌ users. Apple says it is "concerned these changes could compromise the user experience, and create new threats to user privacy and data security."

Top Rated Comments

The Phazer Avatar
21 weeks ago

No, that is not the actual cost. That's just payment processing. Apple needs about 8 billion to run the App Store, that needs to come from somewhere. Are the authorities going to outlaw profit?
Eight billion to run the app store.

Hahahahahaha.

Hahahahahahahahaha.
Score: 39 Votes (Like | Disagree)
DarkAeneas Avatar
21 weeks ago
Oh boy, still 27%, this will not land well with anti-monopolists and legislators o_O
Score: 27 Votes (Like | Disagree)
Michael Scrip Avatar
21 weeks ago
All this time they were fighting for "alternative payment systems"

Turns out they should have been fighting for "lower commission fees"

I'm guessing more lawsuits are coming. Grab your popcorn!

?
Score: 27 Votes (Like | Disagree)
draugminaion Avatar
21 weeks ago

Lol that's ridiculous.

At least they're kinda admitting here that 3% is the actual cost.

That last line should be changed to "create new threats to our bottom line".
No, that is not the actual cost. That's just payment processing. Apple needs about 8 billion to run the App Store, that needs to come from somewhere. Are the authorities going to outlaw profit?
Score: 17 Votes (Like | Disagree)
Brian Y Avatar
21 weeks ago
Lol that's ridiculous.

At least they're kinda admitting here that 3% is the actual cost.

That last line should be changed to "create new threats to our bottom line".
Score: 16 Votes (Like | Disagree)
elvisimprsntr Avatar
21 weeks ago
My answer.

1. Don't use apps/services that use third party payment systems. Having my credit card number floating around in more places on the internet does not seem like good OPSEC.
2. Assuming Apple will be forced to offer side loading apps, don't side load apps from third party sources. Not unless you like having your device compromised and personal information stolen.

Sure, Apple isn't perfect, but using third party payments and apps stores is akin to the Wild West. Android is a prime example. https://www.androidheadlines.com/2016/01/third-party-app-stores-blamed-for-malware-infections.html

If you don't like Apple's closed ecosystem, you are free to switch to Android. I think governments time would be better spent on solving corruption, embezzlement, drugs, and providing social services to its citizens. Unless of course government officials are the ones committing crimes and they are just using this as a way to deflect attention away from the real problem.
Score: 16 Votes (Like | Disagree)

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