Mike Wuerthele
A South Korean parliamentary committee has voted in favor of preventing big tech from forcing the use their in-app payment systems in App Stores, but it isn't clear when — or if — the final vote and presidential ratification will take place.
According to South Korean news agency Yonhap, the bill was passed as expected, by the legislation and judiciary committee of the country's National Assembly. This was the last hurdle before a final vote before a plenary session of the full assembly, and ultimately ratification by President Moon Jae-in.
That plenary session was originally scheduled to follow Wednesday's committee vote. However, it has now been delayed until further notice.
The bill, which amends South Korea's Telecommunications Business Act, is being dubbed the "Anti-Google law" by local media for its targeted language against owners of digital app stores. It passed, it will force Apple and Google to allow alternative payment methods for in-app purchases, as well as prevent app store rules from promoting alternative and self-hosted payment methods.
"User trust in App Store purchases will decrease as a result of this proposal — leading to fewer opportunities for the over 482,000 registered developers in Korea who have earned more than KRW8.55 trillion to date with Apple," Apple said in a statement.
A very similar declaration by Google was made on Monday. A Google spokeswoman said that the company believed the legislation would harm consumers and software developers.
Trade groups associated with Apple and Google are also fighting the measure. In October, the Information Technology Industry Council urged the U.S. Trade Representative to note concerns about the South Korean bill in an annual report on foreign trade. The group said passage of the legislation could violate joint trade agreements.
The legislation passed committee scrutiny in the Korean National Assembly in July with minor resistance. The early Wednesday vote precedes being sent to the full assembly and ultimate ratification by President Moon Jae-in.
The Coalition for App Fairness is in favor of the bill. It hopes that the bill will prompt the US to pass similar legislation.
William Gallagher
Christine McKee
AppleInsider Staff
Chip Loder
Malcolm Owen
11 Comments
I read a story two days ago that Apple had gone to the White House to stop this. I wonder what they had to concede to get the WH to stop this bill. More back doors? Unfettered access to all customer data? This didn’t just get delayed indefinitely for no reason. I have the suspicion that many countries are doing this to extort Apple and Google to bend to their wills. Every time they want something from big tech, they just introduce a new bill - radical in-app payment changes, App Store “choice,” mandated charging ports, etc. Want to undermine security and spy on citizens? Dont have the FBI take the fight to congress - just introduce a law threatening their lucrative business models. Done! Because they know it works. For as “woke” as Apple and Google fancy themselves, they will always choose earnings over scruples.
“I wonder what they had to concede to get the WH to stop this bill.”
Lots and lots of campaign contributions for starters.
Hey, doesn't S. Korea have big companies that do business in the USA? Like, Samsung and Hyundai, just to name two? Maybe the U.S. should pass a law requiring them to offer U.S. consumers a special, lower, pricing tier where the company makes zero profit (or even a significant loss) on the sale. That would teach them a lesson in not taking such a big tax on their own products, over which they currently exert unfair, monopolistic, gate-keeper, toll-taker, rent-seeker control.
In public Apple says, this bill will hurt consumers and developers. In private the add, because we will be forced to cut off access to apps in your country altogether.