Apple to Fix 33% Commission Nightmare for South Korean App Developers
Apple’s latest promise is a relief wave for devs in Seoul who were drowning in an unexpected 33% commission over the top. That figure pops when the app price and a hefty 10% VAT stack up, amounting to a hefty fee that some developers felt was more sting than sweet. They’ve even taken the issue to their regional fair‑trade commission – and Apple’s taking a look.
What’s the Deal?
- App price + 10% VAT: Roughly a 33% hit for many South Korean developers.
- Profit Achilles’ heel: Fees can eat into half of their earnings.
- Fair‑trade frontlines: Developers have joined the push for a lighter load.
Apple’s Response
Apple clarified that its App Store fees remain 15% for most developers, but acknowledges the irregularities caused by the VAT‑plus‑price combo. They’re working on a location‑specific adjustment to ensure that the commission stays fair and transparent. While the exact roadmap is still under wraps, the tech giant’s pledge shows they’re keen to make the marketplace a smoother ride for all.
Bottom Line
South Korean app builders can breathe easier knowing Apple will re‑examine the commission structure. Until then, developers are advised to keep a close eye on their finances and maybe double‑check the VAT before a sell‑out.
Apple’s App Store on the Defensive
South Korea’s regulators are putting the Cupertino giant in the spotlight, and it’s not a gentle chat‑up.
From “loophole” to a full‑blown audit
- The FTC’s chair, Han Ki‑jeon, sent a press release saying the so‑called loophole will finally be closed. The bad news is, it’s been open for a while.
- Back in September, an investigation started because local app developers were complaining about “unfair commissions.”
- The authorities weren’t shy – they swooped into Apple’s regional offices in Cupertino to file their complaint.
- Apple’s response was a simple, “We’ll fix this in January 2023.” And that’s it. No big public apology or financial detour.
South Korean regulators go beyond the App Store
It’s not just the App Store that’s under scrutiny. The same oversight bodies now want to sniff around alleged in‑app payment issues affecting both the App Store and Google’s Play Store.
Why the fuss? Developers feel they’re being squeezed by invisible handcuffs, and regulators want to make sure the giants aren’t pulling any more favors from the market.
What does this mean for end users?
For the average iPhone or Android user, it might be a bit of a spoiler: yes, the billing systems are being checked, but you’ll still get your favorite apps.
Apple will be pretty busy, and regulators will keep an eye on how they adjust their fee structures. In the meantime, developers are probably hoping for a less rigid “frame” better suited to their own ecosystems.
Stay tuned – it’s a long walk through legal labyrinths, but at least it’s not all doom‑and‑gloom. If anything, it’s a good reminder that the tech giants can’t sleep on their ethics corner.
