What you need to know
- EU Chief Margrethe Vestager has slammed Apple over its non-compliance with new Dutch app store laws.
- She said it seems that Apple prefers to pay periodic fines rather than comply with Dutch Competition Authorities.
- She promised "effective enforcement" of the rules.
EU Commission EVP and competition Chief Margrethe Vestager has slammed Apple's decision to choose paying fines over compliance with new Dutch app store laws, in a speech this week.
Speaking at Berkeley on Tuesday Vestager touted the EU's Digital Markets Act stating "we are recognizing the reality that a handful of key platforms now act as gatekeepers to a large part of the internet, including online markets." She said that while the details are still being finalized "effective enforcement" and sufficient resources would be key to ensure compliance. She then cited Apple's response to new app store laws in the Netherlands stating "As we understand it, Apple essentially prefers paying periodic fines, rather than comply with a decision of the Dutch Competition Authority on the terms and conditions for third parties to access its app store. And that will also be one of the obligations included in the DMA."
Apple received its third $5 million+ fine this week because dutch competition authorities are not satisfied with Apple's plans to adhere to new laws in the country that will significantly alter the App Store on devices like the iPhone 13, the company's current best iPhone.
Apple's plans involve asking developers of dating apps to develop completely separate apps if they want to offer alternative payments, and has further announced it plans to charge 27% commission on such transactions, only 3% less than its current rate of 30%. This revelation prompted an outcry from some developers, many of whom see alternative App Store payments as a route to avoiding Apple's commission rates altogether.
