South Korean legislation could force external payment options onto App Store

The South Korean government is set to introduce legislation that will force Apple and Google to allow alternate payment options, and the Coalition for App Fairness is lobbying for passage.

The South Korean bill would be the first of its kind around the globe, one that would prevent app market owners from setting restrictions around payment systems. The Coalition for App Fairness hopes this bill will set a precedent that will spur U.S. legislators to do the same.

According to Yonhap News, Match Group SVP and Coalition founder Mark Buse met with Korean Democratic Party lawmakers at the National Assembly. He supported the nascent bill and cited that at least 15 states had made similar legislative moves surrounding app payments.

The new bill will amend the Telecommunications Business Act in a move approved by the National Assembly's Science, ICT, Broadcasting and Communications Committee. This decision was made after Google's move to replicate Apple's App Store rules by requiring developers to use Google's payment system and pay up to 30% of revenue.

The outcry from developers forced Google to push back enforcement of its new policy to March 2022, but legislators may step in. Both Google and Apple argue that such amendments may put users at risk of fraud.

The Coalition for App Fairness consists of several companies, many of which have some negative history with Apple. Spotify, Epic Games, and Tinder are all a part of the coalition.

If the South Korean government passes this legislation, it could mean a big increase in global pressure as other countries adopt similar laws around payment systems. Apple and Google may be compelled to enable alternate payment systems or exit business in countries with such laws.

11 Comments

22july2013 11 Years · 3736 comments

About 3 years ago

AppleInsider said:
If the South Korean government passes this legislation, it could mean a big increase in global pressure as other countries adopt similar laws around payment systems. Apple and Google may be compelled to enable alternate payment systems or exit business in countries with such laws.

That last phrase is what I've been arguing on this site for years, and most of the time I've been ridiculed for thinking that Apple would even consider that. Thanks for saying that.

What would happen if both Apple's iOS and Google's Android were no longer functional in South Korea?

p-dog 14 Years · 136 comments

Ah, I see the South Korean government is bending over and twerking at the behest of one of its biggest corporate pimps: Samsung.

avon b7 20 Years · 8046 comments

22july2013 said:

AppleInsider said:
If the South Korean government passes this legislation, it could mean a big increase in global pressure as other countries adopt similar laws around payment systems. Apple and Google may be compelled to enable alternate payment systems or exit business in countries with such laws.

That last phrase is what I've been arguing on this site for years, and most of the time I've been ridiculed for thinking that Apple would even consider that. Thanks for saying that.

What would happen if both Apple's iOS and Google's Android were no longer functional in South Korea?

What would 'exit business' mean for Apple if they stopped selling handsets in any particular country that introduced legislation like this?

It would mean chaos for its business model. Especially as other countries around the globe are likely to force Apple to open up the NFC hardware for competition to exist.

Do you think they would stop selling around the world?

No.

No country would miss Apple and Android users can already choose whichever payment option they prefer.

'Exit business' would simply be to stop Apple Pay in those countries. Nothing else.

The problem with that, is that it would turn users off the platform as Apple wouldn't make the NFC hardware available to other companies. It would be as if NFC based payments simply didn't exist on iPhones.

Far better for Apple to simply comply with legislation and continue selling in those markets.

PERockwell 6 Years · 41 comments

Does anyone really think that Epic et al will reduce their prices if alternative payment options are mandated?

nbuchert 7 Years · 5 comments

PERockwell said:

Does anyone really think that Epic et al will reduce their prices if alternative payment options are mandated?

Of course they won’t lower there prices. They will just get a larger income from their sales when they don’t have to pay Apple. I guess Apple will have to increase the annual price for being able to have an app in the AppStore making it more expensive for small developers to release apps.