April 28, 2024

Apple Reaches Max 50 Million Euro Fine for Failing to Comply With Netherlands App Store Rules

Posted March 28, 2022 at 9:02pm by iClarified · 3287 views
Apple has reached the max 50 million euro fine for failing to comply with App Store rules set by the Netherlands, according to the country's Authority for Consumers and Markets (ACM).

Yesterday, Apple did adjust its proposal regarding payment systems for dating-app providers; however, it's still unclear if this modified proposal is in compliance.

On Sunday, March 27, Apple adjusted its proposal concerning compliance with the requirements set by the Netherlands Authority for Consumers and Markets (ACM) under Dutch and European competition rules. ACM welcomes Apple's current step. The adjusted proposal should result in definitive conditions for dating-app providers that wish to use the App Store. Once the proposal for definitive conditions has been received, ACM will submit it to market participants for consultation. ACM will then as soon as possible hand down its decision whether Apple, when implementing those definitive conditions, is in compliance with ACM’s requirement that alternative methods of payment should be possible in dating apps.

Notably, if the proposal is not approved, the Netherlands plans to increase the fines Apple will have to pay until it complies.

Until last weekend, Apple still had not met ACM’s requirements. That is why it has to pay a tenth penalty payment, which means that Apple must pay the maximum penalty of 50 million euros. If ACM comes to the conclusion that Apple does not meet the requirements, ACM may impose another order subject to periodic penalty payments (with possibly higher penalties this time around) in order to stimulate Apple to comply with the order.

Apple's willingness to pay the penalty of 5 million euro per week has drawn the ire of the European Commission. The EU has provisionally agreed to implement the more encompassing Digital Markets Act which will force Apple to allow sideloading, third party payment systems, and make iMessage interoperable. That regulation will fine companies up to 10% of total worldwide turnover and 20% of worldwide turnover for repeat offences. It also enforces anti-circumvention provisions.

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