"Unfair Collection of 350 Billion KRW in Fees"... Mobile Game Association Reports Apple to Fair Trade Commission
[Asia Economy Reporter Seungjin Lee] The Korea Mobile Game Association announced on the 1st that it has reported Apple to the Fair Trade Commission, claiming that Apple unfairly pocketed 350 billion KRW in in-app payment fees.
The association stated that Apple collects fees by including value-added tax (VAT) in the sales amount, which serves as the basis for calculating in-app payment fees. Although the in-app payment fee rate Apple should receive from developers is 30%, Apple counts the sales amount as the supply price plus 10% VAT, effectively taking 33%, according to the association's assessment.
Based on the total amount of 11.6 trillion KRW paid through the Apple App Store in Korea from 2015 to 2020, the association calculated that Apple unfairly took about 350 billion KRW in fees.
In contrast, Google, which operates 'Google Play,' is known to charge a 30% fee based on the supply price excluding VAT, unlike Apple.
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Hwang Seong-ik, chairman of the Mobile Game Association, said, "We have requested Apple to correct the unfair fee calculation, but have not received a response," and pointed out, "In some cases, Apple pays VAT on behalf of certain overseas developers, which also raises concerns about discrimination."
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