Apple on Friday showed how developers of Dutch-powered dating apps can bypass Apple’s in-app payments system, a step closely watched by Iphone Manufacturers face global antitrust concerns about their control over the mobile app industry.
Apple has long authorized the use of its in-app billing system, which charges a commission of up to 30% that some developers like Tinder owners Match group argued is too high. The Dutch Consumer and Markets Authority ACM) last year ruled that Apple’s rules violated Dutch competition law in the dating app market and asked Apple to allow developers to that development uses a third-party payment processor.
Investors are watching developments in the Dutch antitrust case for the impact they could have on revenue on Apple’s App Store, the largest component of its value-services business. price of 68.4 billion USD about 5,347.30 crore) of the airline.
As a rule, Apple says dating app developers will still have to pay them commissions for sales made outside of its in-app payments system, although they will reduce price a little. Apple has previously said that developers who are paying a 30% commission rate to them will owe them 27% commission.
But some developers have paid Apple a 15% lower commission when they meet certain criteria like keeping a subscribed customer for more than a year.
Apple’s previous rules did not specify whether such developers would receive a discount for using a third-party payment service. Apple on Friday said those developers will pay a 12% commission when using external payment systems.
Apple on Friday also said Dutch authorities are required to change the look and feel of apps when using third-party payments.
Apple’s system will present the user with a warning stating that the user will have to contact the developer about payment issues such as requesting a refund. Apple initially included a button that would allow users to return to a third-party payment option after being shown a warning, but the iPhone maker said on Friday that Dutch authorities rejected that button.
“We don’t believe some of these changes are in the best interest of user privacy or data security,” Apple said in a news post. “As we have said before, we disagree with ACM’s original order and are appealing.”
© Thomson Reuters 2022
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