Looks like Apple is facing an oncoming storm of lawsuits and investigations as Korean local startups call for an investigation into Apple and Google over the 30% commission that they charge on in-app purchases.
Official Statistics reveal a joint monopoly of the two companies over the App market of South Korea.
The startups argue that small businesses are more at a disadvantage as they are usually not in a position to negotiate, unlike large companies that can negotiate lower commissions or exemptions. This claim is not completely false as there exists some good evidence to back it up. It was recently revealed how Apple agreed on a half-price deal for Amazon.
Apple has also known to have created a special category of apps – known as “reader apps” – just to be able to offer the Netflix App on its platform. This category was completely exempted from paying Apple any sort of commission.
But these negotiations and exemptions appear to be rather rare.
The complaint came at a time when Apple was about to settle a different anti-trust investigation in Korea. The terms of the settlement are not out yet but they are likely to involve paying a fine and agreeing to some policy changes.