Accra:Apple is set to decrease its App Store commission rate in Taiwan from 30% to 26%, effective October 31, following a commitment to Taiwan's Fair Trade Commission (FTC). This decision aims to address concerns regarding competition and the company's restrictions on app developers.

According to Focus Taiwan, the FTC has been examining whether Apple's restrictions, known as the "Apple tax," might breach the Fair Trade Act. The term refers to the commission Apple charges developers for paid apps and in-app purchases through its App Store. Currently, a 30% commission is applied, meaning Apple collects NT$30 (US$1) from a NT$100 transaction, leaving developers with NT$70 before additional costs.

Critics have expressed that Apple's mandatory in-app payment system limits developers' payment method choices and could increase costs for businesses and consumers. To address these concerns, Apple proposed the commission rate reduction under Article 28 of the Fair Trade Act, which permits the suspension of an investigation if a company makes certain commitments.

Apple announced that changes to the Taiwan storefront would occur after discussions with the FTC. The new commission rate will also apply to markets such as Japan and Brazil and will be implemented automatically for developers in Taiwan, requiring no additional actions from them.

The FTC will continue to monitor Apple's compliance and may resume its investigation if Apple does not meet its commitment, if significant changes occur in the underlying facts, or if the decision was based on incomplete or inaccurate information. Additionally, the FTC will persist in investigating any other potentially anti-competitive or unfair practices by Apple on a case-by-case basis.