Apple Threatened With IDR 804 Billion Fines In The Netherlands, If It Is Still Monopolizing On Payments In Its Application

Apple's monopoly in the payment system in the app store is starting to get lawsuits in various countries. (photo credit: pixabay)

JAKARTA - Trade competition regulator (ACM) in the Netherlands said on Friday, December 24 that Apple had violated the country's competition laws and ordered changes to the iPhone maker's App Store payment policies.

Apple's practice of requiring app developers to use an in-app payment system and paying a commission of 15 percent to 30 percent for purchases of digital goods on their apps has come under scrutiny from regulators and lawmakers around the world.

An investigation by the Dutch Authority for Consumers and Markets (ACM) into whether Apple's practices constitute an abuse of its dominant market position was launched in 2019, but was later reduced in scope to focus primarily on dating market apps, including Match Group's Tinder.

"We disagree with the order issued by ACM and have filed an appeal," Apple said in a statement as quoted by Gadgets 360. It added that "Apple does not have a dominant position in the market for software distribution in the Netherlands, having invested significant resources in great help dating app developers reach customers and thrive on the App Store."

Reuters also reported in October that ACM had discovered Apple's anti-competitive practices and ordered changes, but that decision was not made public until last Friday.

The regulator's decision said Apple violated competition laws. The decision has also ordered Apple to adjust unreasonable conditions in its App Store that apply to dating app providers.

The decision ordered Apple to allow dating app providers to use alternative payment systems. The company faces a fine of up to 50 million euros (IDR 804 billion) if it fails to comply with the decision.

Apple was given until January 15 to implement the changes, said a statement.

"We applaud the ruling issued today by the Court of Rotterdam confirming ACM's decision that forced use of payment systems in Apple applications and other practices violates Dutch and EU competition laws, and must be removed by January 15," Match Group said in an emailed statement.

The revelations about Apple's regulatory setback in the Netherlands came after the iPhone maker lost a fight in South Korea to stop a law requiring major app platform providers such as Apple and Alphabet's Google to allow developers to use third-party payment services.

Google has indicated it will allow such payments, although it will still charge them a commission. Apple has not commented on its plans to comply with the court ruling in Korea.

Apple faces proposed legislation in the European Union and the United States that would force it to change its in-app payments policies and other business practices that developers have rejected.