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S. Korea passes bill to limit Google and Apple's control over in-app payment systems
- September 02, 2021 | Other
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Updated: 2021-09-01 17:03:43 KST
South Korea has passed a closely-watched bill to remove in-app payment restrictions imposed by operators like Google and Apple. The National Assembly approved amendments to the Telecommunications Business Act on Tuesday, that'll prevent Google and Apple requiring software developers use their in-app payment systems.
"I announce the approval of the amendment."
For every dollar a consumer spends on a mobile game in the Google or Apple app stores, those firms take as much as 30 cents as commission. Google and Apple have been charging commissions of up to 30 percent on every purchase of mobile games via their app stores. The move to allow users in South Korea to enjoy a variety of payment options for in-app purchases began after Google announced last September that it would enforce its billing policy on all Play Store apps. The bill, should it be signed into law by President Moon Jae-in, will allow app developers to direct consumers to other payment platforms, where Google and Apple cannot scoop up their lucrative commissions. There has been an outcry from developers around the world over their high commissions. Foreign media outlets report that the bill could impact the shape of the internet as we know it. Bloomberg said the bill will "open up their app stores to other payment systems, setting a potentially radical precedent for their lucrative operations everywhere from India to the U.S." An expert said South Korea's passage of the bill could spur similar actions abroad.
"If Google continues to force its in-app payment systems on users, other countries will also try to take legal action against it following South Korea's precedent. This will put Google on the defensive."
Once the bill is signed by President Moon, South Korea will become the first country in the world that legally enforces tight reins on Google and Apple's in-app payment systems. Eum Ji-young, Arirang News.
"I announce the approval of the amendment."
For every dollar a consumer spends on a mobile game in the Google or Apple app stores, those firms take as much as 30 cents as commission. Google and Apple have been charging commissions of up to 30 percent on every purchase of mobile games via their app stores. The move to allow users in South Korea to enjoy a variety of payment options for in-app purchases began after Google announced last September that it would enforce its billing policy on all Play Store apps. The bill, should it be signed into law by President Moon Jae-in, will allow app developers to direct consumers to other payment platforms, where Google and Apple cannot scoop up their lucrative commissions. There has been an outcry from developers around the world over their high commissions. Foreign media outlets report that the bill could impact the shape of the internet as we know it. Bloomberg said the bill will "open up their app stores to other payment systems, setting a potentially radical precedent for their lucrative operations everywhere from India to the U.S." An expert said South Korea's passage of the bill could spur similar actions abroad.
"If Google continues to force its in-app payment systems on users, other countries will also try to take legal action against it following South Korea's precedent. This will put Google on the defensive."
Once the bill is signed by President Moon, South Korea will become the first country in the world that legally enforces tight reins on Google and Apple's in-app payment systems. Eum Ji-young, Arirang News.
Reporter : jy_rachel@arirang.com
