South Korea intends to ban Apple from forcing developers to use in-app purchases

South Korea is “very likely” to pass legislation that would ban Apple and Google from forcing developers to use appropriate payment systems for apps, cutting off companies from a core revenue stream, which would wreak havoc on their ecosystems.

The source says the country is “expected” to approve an amendment to the telecommunications business law, colloquially known as the “anti-Google law.” If the amendment is approved, it will be put to a final vote on Wednesday. This law could be a disaster for Apple’s App Store, as it effectively prevents Apple from receiving 30% (or 15%) of transactions made in the App Store for digital goods, as developers will be allowed to use other payment systems besides in-app purchases. …

This measure is one of the main arguments in Apple’s fight against Epic Games. The Fortnite game company argues that developers should have the right to choose how they allow customers to pay for their digital goods. Currently, App Store developers have to use in-app purchases from which Apple gets a share, either 15% or 30%, depending on how much the developer earns.

The new rule of law is similar to the bills that have emerged in the EU and the US after tightening control over Apple, Google and their respective application markets.

This step will most likely not go unnoticed by Apple. In court during the Epic Games trial, Tim Cook said that if developers are allowed to use alternative payment methods in the App Store, the company will still charge a fee on those transactions, or at least try to do so.

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Alexandr Ivanov earned his Licentiate Engineer in Systems and Computer Engineering from the Free International University of Moldova. Since 2013, Alexandr has been working as a freelance web programmer.
Function: Web Developer and Editor
Alexandr Ivanov

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