South Korea became the first country to pass a bill to end Apple and Google’s control of payments in the app store. The South Korean Parliament has passed a bill that forces Google and Apple to open an app store for alternative payment options in South Korea. This could end the tech giant’s dominance over how store developers sell digital products within their apps. The bill, the first in the world, amends South Korea’s Telecommunications Business Act to prevent large app market operators from requiring the use of in-app purchase systems.
If Apple and Google do not comply with this rule, the Korean media regulator, the Korea Communications Commission, will fine 3% of total revenue in South Korea. This is a welcome move from national legislators, as global scrutiny of Google and Apple for “unjustified” fees for in-app purchases made on apps downloaded from the App Store or Google Play Store is increasing. .. If a user makes an in-app purchase within an app downloaded via the Google Play Store or Apple App Store, the developer will be charged a fee of up to 30%.
Developers around the world have expressed concern about in-app payment systems in opposition to high fees. Developers are demanding that other systems be free to use.
The new bill passed in South Korea is expected to give developers the option to use their favorite payment method for in-app purchases. South Korean law is the result of Google’s last year’s announcement that it will apply a billing system to all Play Store developers since October last year.
A similar bill has been introduced in the United States to limit Apple and Google from controlling apps in the app market. Both tech giants are now involved in a legal dispute against Fortnite make Epic Games over the same issue after Google and Apple launched Fortnite from their respective stores as Epic offered users alternative payment options. In addition, in July, about 36 US states filed a lawsuit against Google, alleging anti-competitive behavior in operating the Play Store to collect and maintain fees.
The passage of the bill also comes after multiple attempts from Apple and Google to appease developers, a report from South Korean agency Yonhap said. Last week, Apple reached a class action settlement in the United States with a developer who accused it of having an edge in app content distribution. Under the settlement, Apple said developers will be able to share information about non-app payment methods with users. This is a move previously restricted by iPhone makers.
In anger, Apple cut fees for app developers who earn up to $ 1 million a year by 30% earlier this year. Google has taken similar steps, reducing commissions to 15% of the first $ 1 million in revenue earned by developers since July.
Are there any more App Store fees?
Source link Are there any more App Store fees?