Apple to lower App Store commission rate to 26% today

APPLE TAX: The company requires developers to use its in-app payment system, which can increase costs for businesses as well as consumers, critics said

The Fair Trade Commission (FTC) yesterday said it had accepted Apple’s commitment to lower its standard App Store commission rate in Taiwan from 30 percent to 26 percent, effective today, to address competition concerns.

The FTC said it had been investigating whether Apple’s restrictions on app developers, including those related to the so-called “Apple tax,” breached the Fair Trade Act (公平交易法).

Apple tax refers to the commission Apple charges developers for paid apps and in-app purchases made through its App Store.

The Apple App Store logo is reflected from an iPhone onto the back of an iMac in an illustration photo taken in Los Angeles on Aug. 26, 2021.

Photo: AFP

Some critics said Apple requiring developers to use its in-app payment system limits their ability to choose alternative payment methods, and can increase costs for businesses and consumers.

During the investigation, Apple proposed lowering the standard commission rate for paid apps and in-app purchases on its Taiwan App Store from 30 percent to 26 percent under Article 28 of the Fair Trade Act, which allows an investigation to be suspended subject to a company’s commitments.

“Apple is making changes to the Taiwan storefront of the App Store, following discussions with the Taiwan Fair Trade Commission,” the company said in a statement on Thursday.

The new rate, which Apple said would also apply in markets such as Japan and Brazil, is to take effect automatically for developers in Taiwan, the FTC said, adding that they would not need to apply or take additional steps to qualify for the lower rate.

The commission said it would monitor Apple’s compliance and could resume its investigation if the company fails to fulfill its commitment, if the facts underlying the decision changes significantly, or if the decision was based on incomplete or inaccurate information.

The FTC said it would continue to investigate any other potentially anti-competitive or unfair practices by Apple on a case-by-case basis.