Daily Newsletter

03 October 2023

Daily Newsletter

03 October 2023

Dutch regulator ACM rejects Apple’s objection to $53m penalty

Apple has allegedly imposed unreasonable conditions on dating-app providers that use its App Store.

Jangoulun Singsit October 03 2023

The Netherlands Authority for Consumers and Markets (ACM) has rejected objections filed by technology giant Apple against penalty payments.

In August 2021, the ACM ruled that Apple violated Dutch competition laws in the dating app market and required the company to allow developers of dating apps to use third-party payment processors.

The regulator fined the company €50m ($53m) for failing to limit the dominant position of Apple’s App Store.

According to the regulator, the iPhone manufacturer has complied with most of the regulator’s demands to open its App Store to alternative forms of payment for dating apps in the Netherlands. However, it failed to meet an undisclosed third element of the conditions related to the fines.

In a statement, the ACM said: “As Apple had failed to end this infringement within the time frame that it had been given, Apple was required to pay a total amount of 50 million euros in penalty payments. ACM declared unfounded the objections that Apple had filed against that decision. This has been announced to Apple in ACM’s decision of 13 July 2023.”

Meanwhile, Apple claimed that the regulator had wrongly defined relevant markets and had overestimated its dominance in the dating app market.

However, the regulator rejected Apple’s objection in July this year.

Media sources quoted Apple as saying: “We disagree with the ACM’s original order, which degrades investment incentives and is not in the best interests of our users’ privacy or data security. As the ACM has denied our administrative appeal, we will appeal to the Netherlands courts.”

Luxury goods, digitalization, and personalization identified as key drivers of the duty-free retail market

Per GlobalData, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats.

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