South Korea prepares to be the first country to legally force Apple and Google to accept various payment methods in their stores
South Korea is preparing to be the first country to legally regulate the app store business and what payment methods should be allowed. As described by Bloomberg, the government of the Asian country prepares a vote for the beginning of September in which they expect aprobar la ‘Telecommunications Business Act’, where it will seek to end the dominance of these large companies on platforms as widespread as the App Store or Google Play.
The new legislation would prevent developers are forced to use Apple or Google’s own payment methods in their app stores and the corresponding commissions of up to 30%. A battle that has led Apple to face Epic Games in the United States and is still pending resolution.
Korean government takes action to fight Apple and Google fees
The position of the two affected companies is clear, standing against this measure.
In a statement to Reuters, Apple explains that this bill “will put users who buy digital products from other sources at risk of fraud, undermine their privacy protections and make it difficult to manage their purchases.”
For Google, Wilson White, senior director of public policy, explains that “although the law has not yet been approved, we are concerned that the process, which has occurred in a hasty manner, has not allowed a sufficient analysis of the negative impact of this legislation on Korean application developers and consumers. If approved, we will review the final text when it becomes available and determine how best to provide developers with the tools they need. “
In South Korea, Google maintains an exemption on commissions since 2020 for developers. After delaying the return of the commission on different occasions, Google was targeting October this year to reimpose the 30% rate. A return to the previous situation that would have promoted this new legislation that locally known as “anti-Google” law.
If finally approved, it would be the first step for a State to regulate how technology platforms should work and what payment methods they should accept. Although, they do not seem to be the only ones working in that direction, since Australia is also considering advancing a law that regulates digital payments such as Google Pay, Apple Pay or WeChat Pay.
Image | James yarema