App Store critic: Apple's resistance to payments competition is futile

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App Store critic: Apple's resistance to payments competition is futile
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One of Apple's harshest App Store critics says the company's resistance to payments competition may well backfire and ultimately help developers

A Dutch regulator Apple to let dating apps in the country use other payment services outside of its own, which currently takes a 15-30% cut from transactions. Apple responded, but the Dutch Authority for Consumers and Markets ruled on Monday that the company's solution"raised several barriers" and failed to comply with the order.

"They're going out of their way to obstruct developers," Eleftheriou told Insider in an interview."Perhaps the calculation is that you'd rather pay the fines, as bad as that may look, than complying and giving in and creating precedence here." Eleftheriou has sparred with Apple in the past over App Store security, fraud prevention, and other issues. Here are three other takeaways he shared from what's happened in the Netherlands so far:By not complying fully, Apple may encourage a stricter crackdown by the Dutch regulator and other authorities. Regulators are becoming more savvy with App Store technology and related systems, and the company's pushback could inspire regulators to act sooner and take tougher action.

Apple wouldn't have to match the cheapest alternatives because the company's embedded payments service has so many things going for it already, such as having users' payment credentials preloaded and consumers' inherent trust in its platform, the developer added. Apple could charge two or three times more than new rivals and still see success among consumers, Eleftheriou predicted.

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