27%: Apple reveals commission rate for alternative App Store transactions in the Netherlands

08/02/2022

Contributed by: Johnson Tran Hoang

Consistent with the ACM's order, dating apps that are granted an entitlement to link out or use a third-party in-app payment provider will pay Apple a commission on transactions.

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What do you need to be aware of?

Apple is pressured to allow other payment options to date sites across the Netherlands.

This company announced that it would be collecting 27% instead of 30% commission.

Apple declares it is entitled to charge commission on any payments made under laws that have been passed, and the 3 percent reduction does not include the cost to collect and remit taxes owed in the name of Apple.

Apple Apple, Source: Proreviewsapp

Apple has disclosed that it will pay 27% of commission instead of 30% on transactions made through another payment method for apps that allow dating within the Netherlands.

In a revision to its article of support on the subject, Apple now states:

As per the ACM's order according to the ACM's order, dating applications that are allowed to connect out or employ an external third-party payment service will be required to pay Apple an amount for transactions. Apple will charge 27% of the amount paid by the user without regard to value-added taxes. This reduction does not include value related to processing payments and other related activities. Developers will be accountable for the collecting and amount of any taxes applicable, including the Netherlands Value-added Tax (VAT) on the sales processed by a third-party payment service provider.

Apple proposes 27 percent commission in Dutch app store dispute - The Verge, Source: Youtube, Technology News Live

It is also the very first glimpse into the way Apple plans to manage commissions on app purchases that are not a part of the standard method in the Netherlands and, as is anticipated, app developers wanting to utilize the alternative method will need to supply Apple with a month-long record of each transaction of digital content and goods via App Store in the 15 days after the close of Apple's financial month. They will then receive an invoice and required payment to Apple at least 27% amount as stated within the agreement.

What is the reason for this? Analysis

This is done to be in line with the new rules in the Netherlands that were enacted by the country's market monitor that is called The Netherlands Authority for Consumers and Markets (ACM). The ACM has decided that Apple has the right to allow app developers to publish their apps via the App Store to offer an alternative payment method that is not part of the Apple In-App Purchase system.

This is the main argument in the Apple against Epic Games trial you might have heard of, as well as an emerging antitrust law around the globe. Many companies, such as Tim Sweeney's Epic Games, want to utilize Apple's platforms but do not believe they have to use Apple's in-app purchasing system, which is the company's all-in-one solution for buying digital goods and services from Apple's App Store.

S. Korea to vote on law to rein in Google and Apple's in-app payment systems, Source: Youtube, Arirang News

The Netherlands, alongside South Korea, is among the first nations to legislate against Apple in this regard. But, the main battleground is the number of commissions. Developers and businesses that seek to make these changes believe that they shouldn't have the burden of paying Apple 30 percent commission to sell digital products and services through the App Store, hence the need for alternate payment options. However, Apple has always maintained that it will charge an amount of commission for these transactions. However, we weren't aware of Apple's method until recently.

The system is highly complicated; for example, apps distributed within the Netherlands that take advantage of this system cannot be found elsewhere, so they must be submitted with a separate app binary and are only available within the Netherlands.