Apple to end overcharging app commission policy in Korea • Register

According to South Korea’s Fair Trade Commission, Apple said it would correct an oddity that charged local developers more than the usual 30 percent Cupertino demands for software sales on its App Store.

News of the change comes after the commission (FTC) opened an antitrust investigation against Apple in September — because it added a ten percent sales tax before charging commission fees in South Korea, and only in South Korea. The unusual billing policy resulted in Korean app developers paying a 33 percent commission rate while their foreign counterparts paid only 30 percent.

The FTC has spoken to Apple about the situation, and the IoT-maker has promised to fix it so that South Korean developers pay only 30 percent.

“If Apple’s voluntary correction is carried out well in the future, I think it will alleviate some of the difficulties for domestic app developers, and help app market operators and app developers communicate more actively to create a fairer and more vibrant app market ecosystem.” FTC Chairman Han Ki-jung said through machine translation from Korean.

Hahn’s comments followed a visit to local developers as part of the FTC’s efforts to support a dynamic and innovative app market ecosystem and create a basis for fair competition in the global technology-monopoly app market.

The FTC said it is closely monitoring cases of app market antitrust violations and plans to set up a dedicated online platform org to handle such cases. The FTC hasn’t given a date for when this platform will start or end, other than “soon.”

Apple has had a tough time in South Korea of ​​late. In August, the country’s Communications Commission (KCC) said it was investigating Apple, among others, to find a solution to Korea’s App Store payment choice mandate.

Previously, Apple had been slow to comply with a law passed in September 2021 that would require Apple and Google to offer third-party payment options in their app stores. Apple argued for months that it was already compliant, then caught up in January 2022