Apple has revealed that it will charge a 27% commission rate on apps that utilize a third party payment system. This is just a 3% reduction from its regular 30% commission rate.
The slightly reduced rate was announced to comply with a Netherlands law that requires Apple to allow dating apps to use their own payment system.
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. Apple will charge a 27% commission on the price paid by the user, net of value-added taxes. This is a reduced rate that excludes value related to payment processing and related activities. Developers will be responsible for the collection and remittance of any applicable taxes, such as the Netherlands’ value-added tax (VAT), for sales processed by a third-party payment provider.
The announcement comes after Apple was fined five million euros for failing to satisfy requirements set by the Netherlands Authority for Consumers and Markets (ACM) regarding payment systems for dating-app providers.
It's unclear how the ACM will respond to Apple's 27% commission rate. Apple has made clear that developers who use a third party payment system will be responsible to assist users with refunds, payment history, and subscription management. A 27% commission rate for distribution services is likely to be viewed by developers as excessive.
Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates.
The slightly reduced rate was announced to comply with a Netherlands law that requires Apple to allow dating apps to use their own payment system.
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. Apple will charge a 27% commission on the price paid by the user, net of value-added taxes. This is a reduced rate that excludes value related to payment processing and related activities. Developers will be responsible for the collection and remittance of any applicable taxes, such as the Netherlands’ value-added tax (VAT), for sales processed by a third-party payment provider.
The announcement comes after Apple was fined five million euros for failing to satisfy requirements set by the Netherlands Authority for Consumers and Markets (ACM) regarding payment systems for dating-app providers.
It's unclear how the ACM will respond to Apple's 27% commission rate. Apple has made clear that developers who use a third party payment system will be responsible to assist users with refunds, payment history, and subscription management. A 27% commission rate for distribution services is likely to be viewed by developers as excessive.
Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates.