Apple will fix unfair commission for South Korea developers
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.
With some exceptions, developers are required to pay 30% commission to Apple for all App Store 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).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.
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