A new regulation in the Netherlands resulted in Apple being fined $5.6 million regarding the company's lack of alternative payment methods for dating apps. On top of that, complaints are also surfacing regarding the fees the company charges developers.
Apple Fined $5.6 Million for Lack of Alternative Methods Allowed on Dating Apps
According to the story by 9to5Mac, a new Netherlands regulation reportedly forces tech companies to allow alternative payment methods to be offered on dating apps. This resulted in Apple receiving a fine of $5.6 million.
Alexander Klopping, who is the chair of the Dutch App Stores Claim Foundation and a journalist and entrepreneur, presents the argument that Google and Apple both charge excessive fees towards developers.
Dutch Consumers Paid 'Too Much for Apps' as Per Dutch App Stores Claim Foundation's Alexander Klopping
Dutch consumers have reportedly already paid over 1 billion euros "too much for apps" as per Mac Observer. As of the moment, 30% commission fees when it comes to sales being made through Google Play and the App Store are being charged towards developers.
After a year, recurring subscriptions commissions are then cut to just 15%. Developers, however, remain unhappy that they still have to pay this amount towards the companies. The situation for Apple is also becoming much more complicated due to the fact that "developers are not allowed to distribute apps outside the App Store on iOS."
Refunds and Rethinking Commission Percentage Charges to Developers Being Sought After
As per Klopping's foundation, the fees and restrictions are seen as "an abuse of power by both companies." To add, the journalist also argues that both companies "should refund the overpayments and rethink the commission percentage charged to developers."
Dutch residents are being called upon by the group in order to sign a petition to ask "for their money back." In addition, a statement was made saying the amount of damage being suffered by Dutch users can amount up to a billion euros.
Foundation Wants to Ensure Both Companies 'Play the Game Fairly from Now On'
The statement then notes that they are going to "reclaim the overpaid money through collective actions and that "together" they will ensure that both companies will "play the game fairly from now on."
As of the moment, it remains unclear as to whether the attempt by the group will succeed. The Dutch App Stores Claim Foundations, however, states that they will still try to negotiate with both companies before they officially take "any legal action."
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Apple Could be Fined Up to $56.5 Million Should They Not Comply to Initial Case
Apple, up until that point, has still had some other problems that need solving in the Netherlands. Apple will reportedly be fined a total of 50 million euros or about $56.5 million USD by the Dutch Authority for Consumers until the company agrees to allow dating apps to use alternative payment methods without a "considerable number of conditions" being imposed.
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Written by Urian B.