Apple will allow dating apps in the Netherlands to use third-party in-app payments

Apple will allow dating app developers in the Netherlands to use third-party in-app payment options. The decision comes after the Netherlands Consumer and Markets Authority (ACM) issued an order in December asking Apple to change the “unreasonable terms in its App Store” that apply to dating apps. While Apple still does not agree with the ruling, it is making some changes to the Dutch App Store for these dating apps.

In an update on the App Store, Apple said: “Since February of this year, the developers of dating apps on the App Store in the Netherlands have been able to use the StoreKit outbound purchase right or the StoreKit outbound purchase link right to enable this ability to sell services through a payment system other than the App Store. In-app purchase from Apple.

It has also removed the requirement that dating app developers use third-party in-app payment solutions to create a separate binary app for the Dutch app store.

According to Apple’s updated information, “This change means that developers may include either entitlement in their existing dating app, but they must still limit its use to the app in the Netherlands storefront and on iOS or iPadOS devices.”

Furthermore, apps that use this “need to include an in-app sample sheet explaining to users that they will make purchases through an external payment system, and the potential impact that choice might have on the user”.

Why is this issue important

So far, Apple has been fined 50 million euros in the Netherlands over the case. According to The Verge, it previously said it would allow dating apps to use alternative payment systems, but it added a number of conditions, such as a separate two-way app along with charging a 27 percent commission. Under the new update, the separate binary clause appears to have been abandoned. But it will still charge 27 percent of the commission on transactions for apps, even if a third-party payment system is used.

While Apple said in the update that it does not approve and is appealing the request, it boils down to the core issue of allowing app developers to use their in-app payment systems for transactions. This has become a talking point around the world. Both Apple and Google insist that app developers use approved in-app payment systems. This means that the app on iOS needs to use Apple’s in-app billing system for user payments. For example, if you want to buy additional coins or currency for any iOS game, you must use Apple’s payment system. The app developer cannot link to their website or use their in-app payment system to charge this. For Apple and Google, this is also a way to get a 30 percent commission from app developers.

But under the European Union’s upcoming Digital Markets Act (DMA), both players may have to scrap such regulations. The EU DMA states that gatekeepers like Apple and Google cannot impose unfair terms for distributing software and apps, and it also calls for third-party payment systems to be allowed within apps.

Meanwhile, South Korea has already passed a similar bill dubbed the “Anti-Google Law” that prohibits both Apple and Google from forcing developers to use only the approved in-app billing system. Also in India, app developers protested the rules and lodged a complaint with the Indian Competition Commission (CC). In the US, Apple is facing a similar battle over the Epic Games issue. The court has already ruled against the company in the current case, although Apple is still appealing the case.

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