Apple's Korea Offices Raided by Antitrust Regulators Over Allegations It Charges Developers 33% Commission

[Wildkraut]

We can all agree that all desktop\laptop app store rather it's Mac ,linux, or Windows PC sucks ass...

Well, on Linux, BSD it's a different world, but it works fine for non-commercial stuff.

On Windows, I use the MS Store for smaller MS own stuff like Netflix App, Powertoys, etc.
Games I get from GOG, Epic and Steam Stores.

On the Mac I also just get smaller stuff and Apples own stuff from the Mac AppStore.

The important tools I need to work, I bought, download and install from the Devs website, they can also auto update, works like a charm.
They even hands me over the control "when to update", I don't like enforced software changes when working of a project. I want to be able to roll back too, this is not possible with Apples AppStore.

So will be iOS AppStore in the future, it's inevitable, third-party AppStores and sideloading will come for sure.
Competition is one of the core things that drives the economies worldwide, that's why antitrust laws exist everywhere.

Then apple will be forced to innovate their ass.

 

[cocky jeremy]

33% sounds excessive. Then you realise it's 30% anyway.

How is it excessive? They can charge what they want. No one is forced to create iPhone apps. My company laughs at 33% margin.

 

[cocky jeremy]

You’re correct. It is nothing to do with that.

It has everything to do with that.

 

[ashdelacroix]

I defend Apple on all sorts of matters, but 30% is way too high. I know people sometimes defend Apple on the basis that in the old days, with boxed software, fees from software distributors could be at this level or even higher, but physical stores are more expensive and complicated to supply and distribute to. There is no reason in a digital world that Apple deserves 30% of every sale. Boxed software and digital software are not equivalent from a distribution point of view.

 

[ProfessionalFan]

Lord have mercy, what a shameless racket Apple has become.

If they are a shameless racket, why would you buy their products (I assume) and frequent an enthusiast website about the company?

 

[ProfessionalFan]

I defend Apple on all sorts of matters, but 30% is way too high. I know people sometimes defend Apple on the basis that in the old days, with boxed software, fees from software distributors could be at this level or even higher, but physical stores are more expensive and complicated to supply and distribute to. There is no reason in a digital world that Apple deserves 30% of every sale. Boxed software and digital software are not equivalent from a distribution point of view.

The developers have the choice of not accepting the terms and not being in Apple's App Store. Pretty simple.

 

[jimbobb24]

Its not a dawn raid unless they call the news to alert them so they can be present with cameras and make a big spectacle.

Seems excessive about a disagreement about how the accounting should be done...

 

[973358]

At first, I thought they do that as an unfair favor to Samsung, but then Apple charges 30% on the 110%, making it 33%.

 

[jimbobb24]

What I'm curious about. When Apple takes their 30% cut. Do they have to pay VAT on that? Does it reduce the developer's VAT liability?

If both are true. Then Apple would just be recouping their part of the VAT liability.

We won't know the actual answer until their records are audited and it goes to trial. If it goes to trial. If Apple didn't do anything. It'll just disappear until the next headline article.

Yes this is a disagreement about how the accounting should be done and my guess is the law did not specify and so a raid had to be done....

 

[ashdelacroix]

The developers have the choice of not accepting the terms and not being in Apple's App Store. Pretty simple.

Not as easy as that when Apple has a dominant position as a key distributor of mobile software. Besides, "just don't use us" is not often helpful as a way to reduce legal or moral responsibilities, particularly when you are a company the size of Apple.

 

[ProfessionalFan]

Its not a dawn raid unless they call the news to alert them so they can be present with cameras and make a big spectacle.

Seems excessive about a disagreement about how the accounting should be done...

It is for public relations purposes. People hear "dawn raid" and assume the person or company is 100% guilty and probably has even more heinous acts in the closet.

I half expect Samsung to run ads about how they aren't met with dawn raids.

 

[TruthWatcher412]

So if I own a mall, can't I charge a store whatever rent I like? Isn't this the same? Apple owns and runs the App Store so they can charge whatever they want. If developers don't like it then too bad.

 

[Kirkster]

I am always interested in seeing the prices that people pay for products include VAT or if VAT is tacked on after the MSRP? I remember the outrage that the new Apple products cost more in the EU Was that price hike after VAT?

The prices are to some extent pegged to the conversion rates of currency. But then the Government adds VAT, Import Taxes, Tariffs, and makes the company advertise it at that price including all of that? Our prices in the US exclude Tax, it is always nice to see how much extra the .gov takes our of your pocket on top of the income taxes.

So is the vat included in this case or on top?

I guess eventually people understand that companies don’t pay these taxes, you do. Or they don’t understand that.

 

[I7guy]

I defend Apple on all sorts of matters, but 30% is way too high. I know people sometimes defend Apple on the basis that in the old days, with boxed software, fees from software distributors could be at this level or even higher, but physical stores are more expensive and complicated to supply and distribute to. There is no reason in a digital world that Apple deserves 30% of every sale. Boxed software and digital software are not equivalent from a distribution point of view.

There is no gun being held to any dev, nor did any of this change in the middle. Devs willingly put their toes in the water to offer a service. Devs don't have to earn anything, however, if they do both apple and the dev make out. The terms were clear from the beginning.

 

[PlayUltimate]

Yes this is a disagreement about how the accounting should be done and my guess is the law did not specify and so a raid had to be done....

Agree. In the US, prices are shown pre-tax. In many other countries the displayed price is post-tax. If the generally assumed pricing in S. Korea assumes a post-tax fee then Apple is over-charging.

 

[ProfessionalFan]

So if I own a mall, can't I charge a store whatever rent I like? Isn't this the same? Apple owns and runs the App Store so they can charge whatever they want. If developers don't like it then too bad.

Precisely right. Fact is everyone wants to be in the Apple App Store and Apple knows it. It'd be stupid not to capitalize on that.

 

[ProfessionalFan]

Not as easy as that when Apple has a dominant position as a key distributor of mobile software.

It is totally easy. They built that dominant position up and they can charge whatever the heck they want for a dev to be included in it. If a dev doesn't want to pay it, they aren't in it. If a dev feels 0% is better than 70% that's their decision.

 

[Ginginova]

How much does the Samsung app store charge?

30%
But there is a big difference to Apple: Samsung allows download of any of the alternative app stores for Android.
So you can use Google, Amazon or any other app stores.

Alternative app stores and Samsung App Store are also not restrictive regarding in-app transactions/purchases which can take place independently of the app store.

 

[nuproject]

So if I own a mall, can't I charge a store whatever rent I like? Isn't this the same? Apple owns and runs the App Store so they can charge whatever they want. If developers don't like it then too bad.

lmao...No it isn't. You might own the mall, but in this case South Korea owns the land , infrastructure, laws, and services that your mall needs.

 

[ProfessionalFan]

lmao...No it isn't. You might own the mall, but in this case South Korea owns the land , infrastructure, laws, and services that your mall needs.

Any argument is immediately invalidated when someone begins their point with "lmao". Just an FYI.

Anyway I believe that user was referring to the post about how 30% is too high for devs right above their post and not about the "raid" in question.

 

[nuproject]

Any argument is immediately invalidated when someone begins their point with "lmao". Just an FYI.

Anyway I believe that user was referring to the post about how 30% is too high for devs right above their post and not about the "raid" in question.

LMAO

 

[Malus120]

Regardless of how you feel about South Korea / Samsung you shouldn't be cheerleading for Apple here...

 

[syklee26]

If you don't abide by the law, you deserve to get raided. This has nothing to do with Korea being home to Samsung. Samsung gets raided plenty of times, as well.

Apple has done plenty of shady stuff in Korea, such as forcing telecommunication companies to pay for Apple marketing. I love Apple and their products, but they need to stop with these nonsense. If you are marketing in Korea, you need to play by their rules, no ifs or buts.

 

[TruthWatcher412]

lmao...No it isn't. You might own the mall, but in this case South Korea owns the land , infrastructure, laws, and services that your mall needs.

Well in this case, there is no land, just a virtual store, owned by Apple. I wasn't referring to the raid but the fact that since Apple owns and runs the App Store, they can charge what they want. If devs don't like it then too bad.

 

[6787872]

great. jail anyone and everyone at apple if they broke korean laws