Apple Office in South Korea has been raided by authorities
Authorities have raided Apple, which is accused of abusing its market dominance in South Korea. The development, which was initially covered locally and eventually appeared in blogs for Foss Patents, covers news regarding wireless technology as well as software patents. The manufacturer of iPhones claims that the agreed price cap of 30% is being exceeded for in-app purchases.
According to reports, the iPhone manufacturing company charges 10% more on the commission, which means that it deducts the required 30% from a total of 11%, charging 3% more than the required rate. According to reports, Google, the other top tech company, bases its fees on a 30% commission that excludes the additional 10%. According to reports, the iPhone manufacturing company made an additional 240 million dollars in profit thanks to the 3% profit margin it earned.
According to reports, the iPhone manufacturing company also charges more for the first year of the membership than the legal maximum of 15%. According to reports, developers must pay 16.5% in addition to the 10% Apple VAT. In the previous month, the investigating agencies had stated that the Korean Copyright Center (KCC), South Korea’s agency that handles copyright-related matters, would impose a fine of 2% on the total revenue earned by the company if the iPhone manufacturing company is found to have violated the norms. The investigative agencies had previously searched the Apple, Google, and One Store offices to learn more about the infractions.
It is rumored that the iPhone manufacturer uses taxation in a similar manner in other nations. The alleged malfeasance of the iPhone manufacturing company, however, has not yet been taken into account. According to reports, taxes are increased by 1% and 5% in Turkey and the UK, respectively, and by 2% and 5% in France and Italy. According to the patent blogs, Apple is at a disadvantage because the iPhone manufacturer charges 26% on margins. According to reports, the 26% margin is twice as much as what Apple charges for in-app purchases.
Apple declared in January that it would abide by a new regulation in South Korea that forbids owners of app stores from pushing developers to use their own in-app purchase platforms. The change went into effect at the end of June, giving developers in South Korea the chance to offer other ways to pay.