South Korea’s parliament has passed a law requiring app store operators such as Google and Apple to require advertisers to use their in-app payment plans. This photo gallery features the Google logo at the top and the Apple logo at the bottom. On Tuesday, August 31, 2021, the South Korean National Assembly passed a law banning appliances such as Google and Apple to force developers to use their services. This photo gallery features the Google logo at the top and the Apple logo at the bottom. South Korea.
South Korea’s parliament on Tuesday passed a law banning app store operators such as Google and Apple from forcing advertisers to use their in-app payment plans. South Korea is believed to be the first country in the world to issue such a license, which became law when the president signed it, with his party backing the law. Technology giants have faced widespread criticism over their actions requiring app developers to use in-app purchases, for which companies receive up to 30% commissions. They say the councils help pay for the cost of handling the material.
The law prohibits app marketers from using their monopolies to claim such payment methods, which means they must allow other methods to pay. He said the revenue was aimed at promoting fair competition. The bill aims to prevent any retaliation against the founders by freezing the companies from causing any unforeseen delay in receiving the materials.
Apple criticized the law in a statement on Tuesday, saying it would “put users who buy digital goods from other sources at risk of fraud, compromise their privacy, make it harder to control their purchases ”and make parental controls and other features ineffective. “We believe consumer confidence in App Store purchases will decrease as a result of this law” and lead to more opportunities for Korean app developers, the company said.
The law also allows South Korean authorities to investigate the performance of app products to open up disputes and prevent actions that undermine fair competition.
Manufacturers in Europe, China and some other markets are worried about the power of Apple, Google and other industry leaders in payments, online advertising and other sites. Chinese regulators have blamed some companies for antimonopoly violations, while other governments are struggling with how best to keep markets competitive.
The Korean Internet Companies Association, a corporate lobby group that includes South Korea’s largest Internet companies including Naver search and shopping giant, welcomed the existence of the currency, which it said will create healthier competition and give users a lot of cheaper content at cheaper rates. . Google says it plans to comply with the law. “Google Play offers more than just payment, and our service costs help keep Android free, giving developers the tools and the global platform to access billions of customers around the world,” he said in a word.
“And just as it costs the developers to build an app, it costs us money to build and maintain the operating system and app store. We will consider how we can comply with this rule while maintaining a model that supports high-performance operating system and app store, and we will share more in the coming weeks, ”he said. . In the US, Apple last week announced that it has agreed to let the developers of iPhone applications send an email to users about cheaper ways to pay for digital and media subscriptions.
The letter is part of a preliminary ruling by a lawsuit filed against iPhone app developers in the US. by Epic Games, creator of the famous video game Fortnite. The judge wondered why Apple could not allow developers of apps such as Fortnite to introduce multiple payment options within their applications.
Last year, both Google and Apple reduced their in-app revenue from 30% to 15% for growth of less than $ 1 million in annual revenue – a move that covered most applications in their respective store. But small commissions do not help big app developers like Epic and Spotify, which have taken their grievances around the world. The European Commission has accused Apple of changing competition by forcing developers to use its payment system as a pretext to let users know about cheaper ways to pay for subscriptions that do not apply. by an application.
Dozens of U.S. states filed a lawsuit in July targeting Google. Australian regulators, meanwhile, have also said they are concerned about restrictions on in-app purchases that mean developers “have no choice” to use Apple and Google’s own payment plans, according to an interim report into the force published in April.