- Apple charges between 15 and 30% commission for payments in the App Store
- The company denied having committed irregularities in the country, but the EU has just rejected its claim
- EU Court of Justice says Netherlands-specific App Store is sufficient reason
The Court of Justice of the European Union has ruled that Dutch courts have jurisdiction over a case against Apple’s App Store, brought by two Dutch foundations.
They allege that App Store fees are excessive and anti-competitive, harming Dutch users, including both consumers and developers.
Apple has previously argued that the Netherlands lacked jurisdiction because the damage did not occur in the Netherlands, however the European court has now dismissed that argument.
Apple could have problems with its App Store in Holland
“The Dutch courts have jurisdiction to hear a representative action relating to Apple’s alleged anti-competitive conduct in relation to its App Store targeting the Dutch market,” the European court said.
The Court of Justice shared that the Netherlands App Store is designed specifically for the Dutch market, uses Dutch and offers apps tailored to Dutch users, meaning that it would be acceptable for the Dutch courts to continue with the case.
Apple also decides its 15% or 30% commission based on its own scale. The company actively discourages third-party payments and app subscriptions, forcing developers to sacrifice larger percentages of their profits through commissions, ultimately driving up prices for consumers.
“To determine the place where the damage occurred, the virtual space constituted by the App Store NL, in which the purchases were made, is the entire territory of that State,” the note explains.
Apple said Bloomberg (through Verdict) that EU regulators “continue to change the objectives of what WFD compliance is, making it impossible to comply with their governing decision.” Apple spends “hundreds of thousands of hours” complying with changing European regulations.
The Cupertino giant still has time to submit a compliance proposal, so the next steps have not yet been taken.
TechRadar Pro has asked Apple for its reaction to the ruling; The company did not immediately respond.
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