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."

Popular Stories

iPhone SE 4 Thumb 1

iPhone SE 4 With Apple's Own 5G Modem 'Confirmed' to Launch in March

Tuesday November 19, 2024 12:12 pm PST by
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
airtag purple

AirTag 2 Rumored to Launch Next Year With These New Features

Sunday November 17, 2024 5:18 am PST by
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development. Below, we recap rumors about a second-generation AirTag. Timing Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
Magic Mouse Next to Keyboard

No, Apple CEO Tim Cook Didn't Say He Prefers Logitech's MX Master 3 Over the Magic Mouse

Sunday November 17, 2024 3:03 pm PST by
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false. The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
Generic iOS 18 Feature Real Mock

Apple Releases iOS 18.1.1 and iPadOS 18.1.1 With Security Fixes

Tuesday November 19, 2024 10:10 am PST by
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
at t turbo indicator iphone 16 pro max v0 8hrh7w5f3w1e1

AT&T Turbo Indicator Showing Up in iPhone Status Bar for Subscribers

Wednesday November 20, 2024 3:42 am PST by
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence. Image credit: Reddit user No_Highlight7476 The Turbo feature provides enhanced network performance through ...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Rumored to Surpass iPhone 6 as Thinnest iPhone Ever

Monday November 18, 2024 1:07 pm PST by
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick. "We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote. If that measurement proves to be accurate, there would be ...
bug security vulnerability issue fix larry

Make Sure to Update: iOS 18.1.1 and macOS Sequoia 15.1.1 Fix Actively Exploited Vulnerabilities

Tuesday November 19, 2024 10:52 am PST by
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices. With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...

Top Rated Comments

The Phazer Avatar
37 months 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
37 months 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
37 months 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
37 months 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)
elvisimprsntr Avatar
37 months 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: 17 Votes (Like | Disagree)
Brian Y Avatar
37 months 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)