Mikey Campbell
The South Korean government on Wednesday asked Apple and Google to ready proposals pertaining to their compliance with a new law that bans app store operators from requiring use of first-party payment systems.
A regulatory official said both companies have until mid-October to turn in compliance plans, reports Reuters.
The request comes as the Korea Communications Commission prepares to draft an enforcement ordnance to go along with a recently passed amendment to the country's Telecommunications Business Act.
The bill, which was dubbed the "Anti-Google law" by local media, bans Apple and Google from forcing developers to utilize first-party payment systems for in-app purchases. Additionally, the amendment places prohibitions on app store rules that dissuade developers from marketing their wares on other platforms.
According to the regulatory official cited in today's report, the Korea Communications Commission will complete the enforcement ordnance within six months.
Korea's new legislation represents the first successful effort by a major government to extricate app store operators from developer revenue earned on the online marketplaces. While the Korean action is not expected to significantly impact either company, identical laws are under consideration in the U.S. and threaten to imperil the tech giants' bottom lines.
Apple and Google take an up to 30% cut of sales and in-app purchases.
Apple has argued that the legislation puts the safety and security of App Store customers in jeopardy.
"The proposed Telecommunications Business Act will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections, make it difficult to manage their purchases, and features like Ask to Buy' and Parental Controls will become less effective," Apple said after the bill sailed through South Korea's parliament in September.
Marko Zivkovic
Wesley Hilliard
Andrew Orr
Christine McKee
Malcolm Owen
Amber Neely
7 Comments
Both companies should shut down their Korean app stores until the law is repealed. Let the Korean government create their own devices and app stores just the way they want them, rather than forcing private industry to bow to their politically-motivated whims.
Our plan is to close the app store to third party apps as it is no longer a profitable portion of our business. Highly unlikely, I know.
The cost of being a developer on the App Store has increased from $100 to $25,000 a year in Korea. You’ll need to upgrade to the new membership. credit for time remaining in your current membership can be applied to the upgrade or you can request a refund.
I read this whole article and all the comments, and I still don't know: Are Apple and Google allowed to charge their commission for companies that use alternate payment portals? Because I think that's what's going to happen in the USA after Judge Rogers ruled that California law requires Apple to allow alternate payment portals. Apple will bill those companies for the commission, and if they don't pay then they will be booted off the platform for breach of contract.