Reuters reports that Apple has to submit its South Korean compliance plan by mid-October. The company is asked for a plan in reference to an upcoming law in the country that will reduce U.S tech companies’ commission dominance by allowing alternative payment systems. Apple and Google have to submit their plans.
Although Google allows third-party app stores on Android devices, like Apple it charges a 15% or 30% commission for app-in purchases made through their app stores. Apple justifies the share cut as the premium for services it provides to the users and developers on the App Store. Cupertino tech giant explains that it has created the App Store as a safe and trusted digital marketplace for consumers by vetting each app for malware and provides developers the necessary assistance and tools to build their iOS and Mac apps. But for legislators, the in-app purchases commission stifles competition and puts small developers at a disadvantage.
South Korea set to pass new regulatory law to prevent Apple and Google from forcing developers to use their payment systems
A regulatory officer told the publisher that “the enforcement ordinance is expected to be drafted within six months or possibly earlier.” When the law will come into effect it will not only prohibit both tech giants from charging a share cut for all in-app purchases but granting developers the freedom to use their payment systems on iOS and Android devices, it will have a far more drastic impact on Apple.
Cupertino tech giant does not allow third-party app stores on iOS devices for security reasons. The company argues that without App Store review checks, sideloading will make it easy for malicious apps to get on iPhones and iPads which will have a catastrophic effect. Apple recently dodged a sideloading bullet in the Epic Games case in the U.S. but its anti-steering policy was deemed anti-competitive. Apple and Google have not commented on the new order.
