Apple agrees to change how it charges app developers

Korea’s antitrust regulator said Tuesday Apple has expressed its intention to voluntarily correct its commission policy.

The move came after the Fair Trade Commission (FTC) initiated a probe into Apple amid criticism that the company charges commissions based on the consumer price inclusive of value-added tax only on Korean developers.

“In September, the FTC promptly launched a probe following reports that Apple charges unfair commissions on only local app developers,” Chairperson Han Ki-jeong told reporters during his visit to Ncsoft, a major South Korean online and mobile game developer.

The FTC said that while overseas app developers paid a 30 percent commission to Apple, local firms were asked to pay a 33 percent rate, as they were charged based on the price that includes a 10 percent value-added tax.

“Recently, Apple said it will voluntarily correct the problematic action by January next year,” Han added. “Should Apple fix it well, it will ease difficulties of domestic app developers to some extent.”

Han said that the FTC will continue monitoring practices in the app market and establish an ecosystem that benefits both operators and developers.

Yonhap