Apple's Fines in Dutch Antitrust Case Could Exceed €50 Million

[MacRumors]

Apple is facing yet another €5 million ($5.5 million) fine in the Netherlands for failing to sufficiently meet recently mandated alternative payment system requirements for dating apps, reports Reuters.

Apple has been fined €45 million ($49.5 million) by the Dutch Authority for Consumers and Markets (ACM) to date, with Apple racking up a new fine each week. The ACM initially said that it planned to fine Apple €5 million per week until it hit a maximum fine of €50 million, but now it looks like the total fines could exceed that.

According to Reuters, subsequent fines after the 50 million euro total could be higher, so we will have to wait to see how this situation ultimately plays out.

Following the ruling that required Apple to allow alternate payment methods for dating apps, Apple said that it would comply. Apple ended up reducing its commission on purchases made using third-party payment systems to 27 percent, down from the standard 30 percent, but the ACM was not satisfied.

To get the reduced fee, Apple is requiring developers to maintain separate app binaries for apps that use third-party payments and it is asking developers to submit monthly records of sales so that applicable commission can be tracked.

The ACM is not pleased with Apple's decision to force dating apps to choose between using the standard in-app purchase system or an alternative payment system, and has said that dating apps must be able to offer both options, leading to the series of fines.

Apple has fought the ACM's order, and submitted another proposal this week in an effort to put a stop to the fees. Apple's newest offer does not fully comply with the order, the ACM said today, so the fines will continue.

Article Link: Apple's Fines in Dutch Antitrust Case Could Exceed €50 Million

 

[Havalo]

That’s equivalent of $0.79 to Apple…

 

[rpmurray]

Apple has fought the ACM's order, and submitted another proposal this week in an effort to put a stop to the fees.

Typo.

 

[antnythr]

This doesn't end until Apple is forced to allow people to install whatever applications they want, without needing to go through the App Store to do so.

 

[KaliYoni]

ACM fine: $49.5 million
Tim Cook 2021 salary: $98.7 million
AAPL free cash flow (12/31/21) : $44.2 billion

I don't think Apple is too worried about the amount of the fine...

 

[vipergts2207]

I remember when folks said Apple would laugh off the "puny fines." Meanwhile, the continued fines appear to be making Apple modify it's method of compliance in some, yet-to-be-known way. Unfortunately for Apple, those modifications don't appear to be enough.

 

[TheYayAreaLiving 🎗️]

I don’t even think Apple cares anymore.

 

[vipergts2207]

ACM fine: $49.5 million
Tim Cook 2021 salary: $98.7 million
AAPL free cash flow (12/31/21) : $44.2 billion

I don't think Apple is too worried about the amount of the fine...

I don’t even think Apple cares anymore.

If that were the case they wouldn't be trying (and failing) to comply.

 

[Appleman3546]

Looks like they have to make changes anyway because of the EU law, so Apple dragging its feet for no reason it seems except maybe to delay the inevitable and collect just a little more cash

 

[snak-atak]

Following the ruling that required Apple to allow alternate payment methods for dating apps, Apple said that it would comply.

Apple would comply… with the fine.

 

[spartan1967]

With all of these imposed fines and demands from countries for alternative payments, Apple should start getting ahead of this by realizing their ecosystem is not fully in Apple’s control anymore. Maybe the bean counters say it would cost less to pay/defend these infractions, but I see it snow balling as time goes by.

 

[q64ceo]

They'd lose less money paying the fines than changing their practices.

It's what corporations do.

 

[JosephAW]

So what? Apple.

 

[andrewxgx]

apple can squeeze some euros from developers in EU before inevitable new law
gov't can squeeze some euros from apple for time being
win-win

 

[_Spinn_]

Apple clearly doesn't care that much about the fines.

 

[alchemistmuffin]

Apple's newest offer does not fully comply with the order, the ACM said today, so the fines will continue.

And Apple is okay with that. They have that “Will Not Comply” stance here that in my opinion, I’m okay with. I rather have Apple handle processing instead of random third party merchant processing my credit card.

And if fines eventually continue, Apple will leave the Dutch market altogether and pull all their products (including Macs and iPhones) instead of complying. It won’t matter to Apple in terms of market share, they have other country they can rely on.

 

[killramos]

Does apple even do enough business in Denmark to justify these fines?

Would be hilarious if they just stopped formally operating in the country lol

 

[andrewxgx]

Does apple even do enough business in Denmark to justify these fines?

Would be hilarious if they just stopped formally operating in the country lol

If they comply, other countries will smell blood and follow with regulations

 

[Bandaman]

That’s equivalent of $0.79 to Apple…

Dunno why you got a thumbs down. This is literal pennies to Apple. I don't understand these lawsuits that are trying to make a difference. They do the same with Facebook. I'm sure if they threatened to fine them 200 billion dollars they would probably stop doing whatever it is they are being sued for.

 

[maxoakland]

This doesn't end until Apple is forced to allow people to install whatever applications they want, without needing to go through the App Store to do so.

I hope you’re right

 

[killramos]

If they comply, other countries will smell blood and follow with regulations

I wouldn’t call cessation if operations in a country complying.

Let the politicians sweat when their voters can’t buy pretty iPhones in Denmark anymore.

Tbh apple only has 23% market share in the EU in general. Begs the question as to if some of these markets are worth the regulatory headaches.

 

[Marshall73]

Other countries should do this too, get some of that covid cost back, LOL

 

[rjohnstone]

Apple clearly doesn't care that much about the fines.

No, but shareholders do.
Paying fines means losing money.
One doesn't throw away millions of dollars in fines just because you have a huge balance sheet.
You want to know how rich people/companies stay rich? They mind their money.
Apple needs to find a way to comply. I'm pretty sure those dating apps aren't generating enough revenue to offset the fines.

 

[I7guy]

No, but shareholders do.
Paying fines means losing money.
One doesn't throw away millions of dollars in fines just because you have a huge balance sheet.
You want to know how rich people/companies stay rich? They mind their money.
Apple needs to find a way to comply. I'm pretty sure those dating apps aren't generating enough revenue to offset the fines.

Its a question of lose millions or billions. Apple is trying to avoid the latter.

 

[firewood]

Could Apple simply raise the price of all it's products and App store apps sold in this country to cover the imposed fines?