Developers are typically required to pay Google and Apple a commission of up to 30% on each sale under these policies
South Korea enacted legislation today prohibiting Apple and Google from compelling developers to use their own in-app purchasing systems, allowing developers to charge consumers using third-party payment methods
The law was set to be voted on yesterday, but it was postponed due to more pressing topics brought before South Korea’s National Assembly. The bill amends the Telecommunications Business Act, which is currently in effect. Its goal is to prevent Apple and Google from abusing their market dominance by “forcing a provider of mobile content, etc., to employ a specific payment method.”
It implies that developers will be able to avoid paying Google and Apple commissions by sending customers to alternative payment providers.
The bill will “put customers who purchase digital items from other sources at risk of fraud, damage their privacy rights, make it difficult to control their transactions, and features like ‘Ask to Buy’ and Parental Controls will become less effective,” according to an Apple representative.
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They also stated that as a result of the legislation, user trust in App Store purchases will most definitely dwindle.
At the same time According to a Google representative, the service fee “helps keep Android free by providing developers with the tools and global platform they need to reach billions of people around the world.
What exactly the law defines?
According to Reuters, it is intended to prevent dominant app store operators from pushing payment systems on app developers and “inappropriately” delaying app reviews or blocking apps.
According to reports, the bill also grants the South Korean government the authority to mediate disputes in the app market involving payment, cancellations, and refunds.
According to Reuters, 180 of the MPs in attendance voted in support of enacting the change to the Telecommunications Business Act
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What does it impact?
Apple in South Korea will no longer be able to restrict developers to exclusively using its in-app shopping mechanism, which pays it a 15 percent to 30 percent fee on all sales made, thanks to the newly passed bill. Since last year, when game developer Epic Games attempted to circumvent Apple’s App Store policy by creating a direct payment channel for consumers, the commission has been in the limelight.
While Apple has defended its in-app shopping system as a safe and secure means for customers to buy digital products within apps, others have criticized the company’s compensation structure. As we mentioned yesterday, Apple’s App Store follows a single set of regulations that apply to all developers worldwide.
Following the bill’s passage, Apple issued the following comment to Mac Rumors. The statement, which was previously made in response to questions about the legislation, claims that the bill will reduce user trust in the App Store.
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