Google and Apple Want to Ban Charging Developer Fees on Google Play and App Store in South Korea

A South Korean parliamentary committee voted Wednesday to recommend amendments to a law that could prohibit Google and Apple from enforcing fees on software developers. If the amendments are adopted, then this will be the first such restriction at the state level. It could hit these companies hard, and other countries could follow South Korea.

Apple and Alphabet have long been criticized for their policy of requiring software developers using their app stores to use only proprietary payment systems that charge fees up to 30%.

Apple said the new law "would expose users who buy digital goods from other sources to the risk of fraud, undermine their privacy protections," undermine consumer confidence in App Store purchases and reduce opportunities for South Korean developers. Wilson White, Google's senior director of public policy, said the company had failed to sufficiently analyze the negative impact of the law on Korean consumers and app developers.

“Google and Apple are not the only ones who can create a secure payment system,” said Lee Hwan, a professor of competition law at Korea University.

The proposed amendments prohibit Google and Apple, which have a dominant market position, from imposing payment systems on content providers and "improperly" postponing the review or removal of mobile content. The law also allows the South Korean government to protect the rights and interests of users, vet app market operators, and resolve payment, cancellation or refund disputes in the app market.

Following the approval of the amendments to the law, dubbed the "Law against Google", these changes are submitted to a final vote in parliament, which will take place on August 30.

2 views0 comments

Recent Posts

See All