Dutch Regulator Rejects Apple's Objections to Fines Over App Store Dominance
The Dutch Authority for Consumers and Markets (ACM) has officially turned down Apple's objections to the fines imposed on the tech giant. The fines, totaling 50 million euros ($53 million), were levied against Apple due to its failure to comply with orders aimed at reducing the dominant position of Apple's App Store.
While the ACM acknowledged that Apple had taken steps to meet most of its requirements, specifically regarding alternative payment options for dating apps in the Netherlands, the tech company had failed to satisfy an undisclosed third element of the conditions linked to the fines.
This legal dispute stems from a ruling made by the ACM in 2021, which found Apple in violation of Dutch competition laws within the dating app market. As a result, the ACM ordered Apple to allow dating app developers to use third-party payment processors. The fines of 5 million euros per week accumulated to a total of 50 million euros during the period when Apple did not comply with these requirements.
Apple challenged these fines, contesting the ACM's definition of relevant markets and the extent of Apple's dominance in the dating app sector. In a decision dated July 13, 2023, which was made public on Monday, the regulator dismissed all of Apple's objections.
In response, Apple expressed its disagreement with the ACM's original order, asserting that it diminishes investment incentives and does not align with user privacy or data security interests. Apple has indicated its intention to appeal the ACM's decision to Dutch courts.
The ACM, in its commitment to transparency, has declared that it will release the undisclosed part of the proceedings objected to by Apple if the matter proceeds to court. This ongoing dispute underscores the broader global scrutiny faced by major tech companies over their market dominance and business practices.