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South Korea First To Ban Apple And Google’s App Store Rules

South Korea is on the verge of banning Apple and Google’s app store rules, requiring developers to stick to the tech giants’ in-house payment systems.

The new ruling will also ban Apple and Google from removing or delaying apps from its marketplaces – a move that many claim the tech giants do out of spite.

The South Korea’s Telecommunications Business Act will be amended any day now, the law having passed South Korea’s National Assembly.

This is a big tipping point for the apps marketplace. Once the bill is officially signed into law by President Moon Jae-in, developers will be able to shop around for the best payment providers, adding a competitive edge to what has been largely seen as a duopoly.

Court papers filed in the U.S. showed the Google only needs to take a 6 per cent cut to break even, while most credit card companies take a 1 per cent slice.

“Just as it costs developers money to build an app, it costs us money to build and maintain an operating system and app store,” a Google spokesperson responded.

“We’ll reflect on how to comply with this law while maintaining a model that supports a high-quality operating system and app store, and we will share more in the coming weeks.”

Apple said: “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.

“We believe 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.”

 

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