Apple will lower its standard App Store commission in Taiwan from 30% to 26% from October 31st, following an investigation by Taiwan's Fair Trade Commission (FTC).
The company confirmed the change in a notice to developers on October 29th. "Apple is making changes to the Taiwan storefront of the App Store, following discussions with the Taiwan Fair Trade Commission," it wrote. The new rate covers standard Apple In-App Purchase and paid app transactions on the iOS and iPadOS App Store, and developers do not need to sign updated terms before October 31st to get it.
Why the Fair Trade Commission stepped in
The FTC had been investigating whether Apple's limits on app developers, along with the commission widely known as the 'Apple tax', broke Taiwan's Fair Trade Act. During that probe, Apple offered to cut its rate under Article 28 of the act, which lets the regulator suspend an investigation in exchange for a company's commitments. The FTC said on October 30th that it had accepted the offer.
According to the FTC, the 26% rate puts Taiwan in line with markets such as Japan and Brazil. Taiwanese developers will get the lower rate automatically, without applying or taking any other steps.
The regulator said it would monitor whether Apple keeps its promise. It can reopen the case if Apple fails to follow through, if the facts behind the decision change in a major way, or if the decision turns out to rest on incomplete or false information. The FTC added that it would still look into any other anti-competitive or unfair conduct by Apple on a case-by-case basis.
What changes for developers
Apple has also revised its Developer Program License Agreement to reflect the new policy, and developers can sign in to their accounts to accept it. A Traditional Chinese translation of the notice is available, while translations of the full agreement will follow on the Apple Developer website within a month.
The new Taiwan rate matches the 26% commission Apple set for its own in-app payments in the European Union when it overhauled its EU App Store fees from October 1st. In South Korea, the Korea Media and Communications Commission (KMCC) fined Apple ₩20.8bn and Google ₩42.9bn on October 28th over rules that pushed developers towards in-app payments.
