Korea becomes the first country in the world to ban Apple and Google from monopolizing in-app payment systems

The dominance of two giants Apple and Google over mobile platforms began to show the first crack when today South Korea passed a bill banning these two companies from forcing developers to use the system. their own in-app payment system. So from now on developers can use other payment methods to collect money from users.

This measure is an amendment to the existing Telecommunications Business Act. It aims to ban Apple and Google from exploiting their unfair positions in the market to ” force mobile content providers, … to use a specific payment method. ”

Currently, Apple’s App Store application store is under intense scrutiny in recent times. South Korea’s newly passed bill is the first time a government has taken a legal step to crack down on mobile platforms. Lawmakers, developers, and others have called for increased scrutiny of both Google and Apple’s app distribution services, stressing that these companies could cause illegal behavior compete.

With the passage of the bill, South Korea now no longer allows Apple or Google to force developers to use their in-app payments – which charge a commission of up to 30% – for each transaction.

This commission level started to come into view as game developer Epic Games launched an antitrust lawsuit against both Apple and Google for blocking third-party payment methods on two of the world’s dominant mobile platforms. world today.

While Apple argues that a safe and secure in-app payment system is a way to incentivize users to purchase digital products in-app, others see it as an unusual commission. company’s degree.

However, Apple’s strict regulations for payment methods on the App Store app store could be threatened with the newly passed South Korean bill. While the legislation is only for users in South Korea, with the rules being applied by Apple to developers around the world, the new legislation could create a global domino effect.

In addition to a 15% to 30% commission for each in-app transaction, Apple also charges $99 per developer for the Apple Developers program. These two revenue streams are one of the few primary ways for Apple to keep the App Store profitable. In the third quarter of this year, this technology giant reported a record high revenue of up to 17.5 billion USD for services, which includes the App Store.

Refer to MacRumors