Laws regulating Google and Apple app stores passed in South Korea, banning exclusive payment system coercion
For apps distributed on the App Store and Google Play, it is obligatory for users to use the payment systems of Apple and Google for in-app purchases. Apple and Google charge up to 30% on in-app purchase fees, which have been accused of being 'too high' and are being scrutinized for antitrust violations. Meanwhile, on August 31, 2021, South Korea passed a law prohibiting 'forced exclusive payment systems by app market operators.'
(LEAD) S. Korea looks set for legislation to curb Google, Apple's in-app billing system | Yonhap News Agency
Google, Apple Hit by First Law Threatening Dominance Over App-Store Payments --WSJ
https://www.wsj.com/articles/google-apple-hit-in-south-korea-by-worlds-first-law-ending-their-dominance-over-app-store-payments-11630403335
South Korea bans Google, Apple payment monopolies
https://apnews.com/article/technology-business-south-korea-a8e160fb9b43681557445cfe06f25bc1
Apple and Google must allow developers to use other payment systems, new Korean law declares --The Verge
https://www.theverge.com/2021/8/31/22643800/apple-google-south-korea-app-store-payment-legislation-passes
Google and Apple charge up to 30% commission on app store payment systems. This number of '30%' was originally set by Apple in the App Store, and Google set the fee in a way that follows Apple. Both companies have been criticized for being 'too expensive' and have begun proceedings against Apple.
Meanwhile, the revision of the Telecommunications Business Law was passed in South Korea on August 31, 2021, and it became clear that restrictions would be imposed on the payment systems of Apple and Google. The bill is endorsed by President Moon Jae-in and becomes effective when signed by President Moon Jae-in.
The Wall Street Journal reports that the new amendment aims to 'promote fair competition,' and app market operators Apple and Google are forcing an exclusive payment system. Forbidden. In other words, Google and Apple must allow payment methods other than their own system. If the law is violated, both companies will be fined 3% for sales in South Korea.
Apple hasn't commented on the passage, but made the following statement before the law passed:
'The proposed telecommunications business law puts users who purchase digital products from other sources at risk of fraud, undermines privacy protection and parental controls, and authorizes children's purchases.'Approval and Purchase the request will weaken the effect of 'and parental controls. Users of the trust is reduced to the purchase of the App Store by this proposal, 482,000 people has produced more than 8.55 trillion won (about 812 billion yen) in Korea so far We believe that the opportunities for these registered developers will be reduced. '
In addition, Google has issued the following statement in response to the passage of the bill.
'We incur costs by developing and operating an operating system and app store, just as developers incur costs when creating apps.' 'App store fees make Android free. It is possible to provide developers with platforms and tools that are accessible to billions of consumers around the world. '
Google is considering ways to comply with the law while supporting high-quality operating systems and app stores, and said it will share information in the coming weeks.
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