Apple wants a 27 percent commission on Dutch apps that use third-party payments

2022-06-11 0 By

After making changes to the App Store to comply with Dutch law, Apple revealed that it would cut the commission on eligible apps from 30 percent to 27 percent.Apple intends to continue to contest the Dutch ruling that it must allow dating app developers to offer alternative payment methods.However, it is complying with the order and has first detailed how developers use third-party systems and has now revealed how much it costs.””Apple will charge a 27 percent commission on the price paid by users, less VAT,” Apple said in an updated support document on its developer website.This is a reduced rate and excludes costs associated with payment processing and related activities.The developer will be responsible for collecting and remitting any applicable taxes, such as Value added tax (VAT) in the Netherlands, processed by the third-party payment provider on sales.”In a new additional document titled “Additional details on the availability of dating Apps in the Netherlands,” Apple said it was appealing the Dutch ruling.And encourage developers to continue to work with the App Store as they have in the past.””Dating app developers who want to continue using Apple’s in-app purchase system, which we believe is the safest and most secure way for users to purchase digital goods and services, can continue to do so without further action.”Apple also stressed that if developers switch to other systems, Apple “will not know about purchases” and therefore will not be able to assist users with “refunds, purchase history, subscription management,” and so on.Apple further explained that a condition of using the alternative payment system is that developers will be required to report sales and that Apple has the right to audit.Apple continued: “Failure to pay Apple commissions could result in offsetting earnings owed in other markets.”It also threatened to “remove the App from the App Store or from the Apple Developer Program.”It is unclear how the new rules will apply to developers with sales of less than $1 million, a group that Apple previously charged 15 percent after halving.Both Apple and Google have been forced to make similar changes in South Korea.In South Korea, the new law applies to all developers, not just those making dating apps, and Apple has been criticized for not providing authorities with a detailed compliance plan.Google was also asked for more details, but was criticised for reducing its service fees by just 4%.