{"id":18926,"date":"2022-11-25T17:09:02","date_gmt":"2022-11-25T17:09:02","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/11\/25\/apple-will-fix-unfair-commission-for-south-korea-developers\/"},"modified":"2022-11-25T17:09:02","modified_gmt":"2022-11-25T17:09:02","slug":"apple-will-fix-unfair-commission-for-south-korea-developers","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/11\/25\/apple-will-fix-unfair-commission-for-south-korea-developers\/","title":{"rendered":"Apple will fix unfair commission for South Korea developers"},"content":{"rendered":"

<\/a>\n<\/p>\n

\n
\n Article Hero Image<\/span>
\n
\n \"\"\/
\n <\/a>\n <\/div>\n
\n


\n
\n AppleInsider may earn an affiliate commission on purchases made through links on our site.
\n <\/em> \n <\/p>\n<\/div>\n

South Korea’s Fair Trade Commission says that Apple will address a loophole that saw local developers being effectively required to pay 33% commission to the company. <\/p>\n

\n

With some exceptions, developers are required to pay 30% commission to Apple for all App Store<\/a> sales. However, in South Korea, they have been charged on not the price of the app, but that price plus the 10% local value added tax (VAT). <\/p>\n<\/div>\n

\n

Consequently, the fees to Apple have worked out to be the equivalent of paying a 33% commission. Following developers reporting this to the FTC, the regulator raided Apple’s local offices in September 2022<\/a>. <\/p>\n<\/div>\n

\n

The Times of India<\/em> says that<\/a> the chair of the Fair Trade Commission (FTC), Han Ki-jeong, has told reporters that the issue may now be resolved. <\/p>\n<\/div>\n

\n

“In September, the FTC promptly launched a probe following reports that Apple charges unfair commissions on only local app developers,” he said. “Recently, Apple said it will voluntarily correct the problematic action by January next year.” <\/p>\n<\/div>\n

\n

“Should Apple fix it well,” Han continued, “it will ease difficulties for domestic app developers to some extent.” <\/p>\n<\/div>\n

\n

It’s not clear why Han believes this, because the net beneficial effect to developers is near-zero, if there are benefits at all. The taxes are still due, and now the onus is on the developers to pay them directly. <\/p>\n<\/div>\n

\n

Separately, South Korea regulators are investigating both Apple and Google over alleged violations<\/a> of local in-app payment laws.<\/p>\n<\/div><\/div>\n