Prosecutors launch investigation into Apple's unfair collection of 350 billion app fees

Reporter Kim Jisun / approved : 2023-08-14 03:00:38
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[Alpha Biz=(Chicago) Reporter Kim Jisun] Prosecutors have launched an investigation into Apple's unfair collection of hundreds of billions of won in app market payment fees from local application developers.

According to legal circles on the 13th, the prosecution has assigned a case in which the Korea Mobile Game Association accused Apple of violating the Telecommunications Business Act and the Fair Trade Act to the Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office.

Last year, the Korea Mobile Games Association accused Apple of collecting about 350 billion won in fees by overcharging in-app payment fees only to local app developers.

In-app payment refers to the use of a payment system created by an app market operator when an app registered with Apple or Google App Market sells paid services.

In the payment process, Apple stated that the payment commission rate to be received from developers was 30% based on sales. In fact, however, it is known that 33% of the commission was applied by adding value-added tax to sales.

From 2015 to 2020, the damages of the companies are estimated to be 345 billion won. All of the damaged areas are domestic developers.

Immediately after the complaint, Apple countered that it consistently applies the in-app payment policy worldwide and calculates fees after deducting taxes in accordance with the 'Developer Contracts and Guidelines'.

Apple later voluntarily corrected the method of charging fees in November of the same year after the Fair Trade Commission launched an investigation into Apple Korea's headquarters. However, it is reported that KRW 350 billion that has already been collected is not responsible for compensation.

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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