Fair trade commission in South Korea tells Apple to fix App Store loophole

Apple promised that it would fix unfair commissions for South Korean developers.

Developers in South Korea have been paying up to 33% in commission on App Store sales due to the fact that they pay the price of the app plus ten percent VAT, or value-added tax. The fees come up to 33 percent, and some developers have reported this to their region’s fair trade commission.

Apple to Fix App Store Loophole

Han Ki-jeon, FTC chair said in a press release that the ‘loophole’ will be resolved. The organization began an investigation in September regarding the unfair commissions to its local app developers, with authorities going to the Cupertino-based company’s regional offices to submit the complaint. Apple responded by saying that the action will be corrected in January 2023.

In addition to the App Store commission loophole, the regulators in South Korea have begun looking into alleged in-app payment allegations for both the App Store and the Play Store.