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Businesses Apple

Dutch Watchdog Finds Apple App Store Payment Rules Anti-Competitive (reuters.com) 56

The Dutch antitrust authority has found that Apple's rules requiring software developers to use its in-app payment system are anti-competitive and ordered it to make changes, Reuters has reported, citing people familiar with the matter, in the latest regulatory setback for the iPhone maker. From the report: Apple's app-store payment policies, in particular its requirement that app developers exclusively use its payment system where commissions range between 15% and 30%, have long drawn complaints from developers. The Dutch investigation into whether Apple's practices amounted to an abuse of a dominant market position was launched in 2019 but later reduced in scope to focus primarily on dating market apps. They included a complaint from Match Group, owner of the popular dating service Tinder, which said Apple's rules were hindering it from direct communications with its customers about payments.
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Dutch Watchdog Finds Apple App Store Payment Rules Anti-Competitive

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  • by betsuin ( 5812894 ) on Monday December 27, 2021 @09:52AM (#62119075)
    A Walled Garden is one thing, Walled Payment that guarantees % into company coffers is entirely different.
    • I agree in part. However here is the issue.
      The App Store was meant initially for someone to buy the product at the App Store, and you "Owned" the app on your device. Apple didn't get paid for Free Apps, but they got a percentage from the paid Apps.
      Running the App store isn't free for Apple, and their service in theory is about them reviewing the software to make sure it is safe for to run on their devices.
      However the App makers got creative, and other than buying a full copy of the App, they found ways to c

      • by dirk ( 87083 ) <dirk@one.net> on Monday December 27, 2021 @12:11PM (#62119495) Homepage

        If this was a real concern, the solution would be to not allow free apps in the apps store. They will not do that though as the app store is basically an extension of the iUniverse. They need things in it, whether free or paid, so they will never do that. They have already agreed to host free apps in the store for just the cost of the license, so they don't have a leg to stand on there. The percentage was supposed to be for providing the payment services. But then they saw they had people locked in since they could not get onto an iPhone without going through the app store (again, by Apple's design) so they decided to force them to only use their payment system as well. This is pretty much a textbook case of anticompetitive practices. For apps to use your store then force apps to use your payment system and make sure there is no alternatative.

      • Re: (Score:2, Troll)

        by thegarbz ( 1787294 )

        Firstly, there's no free way to publish an app on iPhone. You still have to pay for your developer account.
        Secondly, the relationship is symbiotic. Steve Jobs was very clear from that, the iPhone is irrelevant, the singular benefit to getting the Apple device is that there's apps for that. Apple directly benefits from apps even ones which they don't make a cent from.
        Thirdly, no there's no justification for a walled garden. There's justification for providing an easy payment method to consumers, and consumer

      • No, it's Apple wants to double dip in sales. You have to pay Apple to sell on the app store (I think it's $100 USD a year). This is the first payment, which is to cover the hosting and app review process. Then when someone purchases it or anything in the app, they want 30% of that, the second payment, a la double diping.

        It's like saying Walmart wanted Apple to give them 30% of everything bought on an iPhone because they sold the iPhone to the person.

        Apple makes money from the sale of the iPhone, the $100 US
      • Running the app store isn't free for Apple, but they get paid for doing it by fees paid by developers. Any additional profit is just that, profit. Running a web store is cheap.

      • huh... the 1 month free AOL did also benefit the store, in UK they were cover disks to magazines for which the shop earnt their usual magazine sale commissions on, but in the case of a free disc pickup from a basket by the till, this generated foot fall the shop can capitlize on to market and sell other products while the person was in the shop. have you any idea how much money it costs to get someone who has no reason to enter your shop to turn up and spend 30 seconds in there? and another company wants
    • by Z00L00K ( 682162 )

      Add to it privacy issues because Apple will see all your transactions done through your account - a gold mine for tracking you. Then imagine what would happen if that data ends up in the hand of evil scammers.

  • I mean, if I offer a good or service online, and I only happen to accept payment through paypal, for example, am I being anticompetitive?

    • by splutty ( 43475 )

      If you are Paypal, and are charging 20% for that, then yes, you absofuckinglutely are.

    • by bws111 ( 1216812 )

      Do you own paypal?

      • You come into my store and tell me you want to pay in bitcoin. I tell you to go fuck yourself cash only. Am I being anti competitive?
        • by Z00L00K ( 682162 )

          Do you own Bank of America?

        • by jonwil ( 467024 )

          This is not "I am a retailer and I get to decide how people pay for my stuff", this is "I am a platform where people can sell things and I am telling the people selling on my platform what payment methods people are allowed to use to buy their stuff"

        • Well as you are the only store in the world that would make you a monopoly.

          No one is suggesting that Apple don't deserve to be paid something, nor the currency or method to receive that payment. What is being objected to is dictating how the main value provider in the proposition gets to receive their payment.

          They are also not simply providing a price for your value added services so that a bill can be paid. They are insisting on a high tax % of all my revenue, instead of being clear what you are doing fo
    • No, but you are anticompetitive

      • Cool so if I walk into your place of business and demand I pay through my cash register you’re being anticompetitive.
        • No, but if you are the only person that offers goods\services, and you start charging exorbitant rates for those things or use your power to force people to spend money the way you want to then it is anti-competitive and there are laws against that. So if you are a store owner, and you start raising your prices, and then someone opens up a store across the street and you buy them out and then raise your prices even more, that its anti-competitive. In many ways FANG companies do that. After a while it become

    • I'd say that you're not being anticompetitive. But Apple wants you to stop using anything other than Apple for payments, and if you don't they'll ban all Apple users in the world from accessing your good or service. That's the rule that's being called anticompetitive.

      • by mark-t ( 151149 )

        If you want to accept other payment methods, then write for other devices. Apple doesn't force anyone to write iOS software for them... the *ONLY* thing that does is one's own jealous desire for their own slice of the market share that Apple has.

        If you wrote software for iOS and Apple said that you were not allowed to write software for other platforms when you develop for theirs, then *THAT* would be anticompetitive.

        • Since you're changing the subject I trust that your earlier question is resolved. As for this new demand of yours, I don't write any software for iOS, so you're shouting at the wrong person.

          • by mark-t ( 151149 )

            Of course it is. The question was rhetorical.

            Apple forcing developers for its platform to only deal with Apple's own preferred method of payment for any in-app purchases is not actually anticompetitive because Apple is not requiring that they use Apple's payment system on non-iOS devices. The only reason it might "feel" like it is would be because developers are simply coveting Apple's non-trivial market share.

            Last time I checked, it was not illegal to be successful.

    • huh... you are the party providing the main added value right ? your added value is probably not a monopoly ? your added value is not regulated ? so you can decide how you need your customer to pay you.

      Clearly it does not cost 30% of all sales revenue to provide the service apple does, based on the revenues generated, based on knowns costs for running a website and equivalent content delivery network, based on known costs for managing payment services and customer support, based on the automation possibl

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