South Korean authorities have raided Apple’s offices in Gangnam-gu. The raid is part of an investigation into claims that Apple is skimming more than 30% commission from some developers.
The fact that various app stores charge a thirty percent commission on many purchases in their stores, both from Android and Apple, has been known for some time and has also been the subject of controversy and lawsuits.
In a new investigation, the South Korean regulator is now investigating whether there are developers where Apple is skimming more than that 30%. This mainly concerns how the tech giant processes the local sales tax or VAT.
According to the Foss Patents site, Korean developers are complaining that Apple charges a 30% commission on the price paid by users. And that includes 10% VAT, which Apple ultimately relinquishes to the government. Therefore, the Korean Mobile Game Association says that Apple takes a 33% commission on what the developer can earn, unlike Google, which bases its commission on the product’s price before adding taxes.
This applies to companies that have to pay the full 30% commission and do not receive the 15% discount for smaller companies. In the same scenario, a commission of 16.5% would apply to those smaller companies instead of the advertised 15% (because here again, the VAT is also included).
Apple has similar procedures in several countries, including France and Turkey. If the complaint is declared admissible in Korea, there is a chance that developers will also revolt in those countries.