The first country to hold back Google, that of Apple in- app billing policies

Visitors look at Apple Inc.’s iPhones and iPads. on display at the flagship of SK Telecom Co. T Factory store in Seoul, South Korea, June 11, 2021.

SeongJoon Cho | Bloomberg | .

South Korea has become the first country to impose curbs on The payment policies of Google and Apple that force developers to only use the tech giants’proprietary billing systems.

The parliament approved a bill on Tuesday that will ban the main apps store operators – like Google and Apple – from requesting developers to only use their payment systems to process the sale of digital products and services.

Such policies usually require developers pay Google and Apple a commission of up to 30% in every transaction.

South Korean lawmakers voted with 180 out of 188 in favor of pass amendments made under the Telecommunications Business Act, Reuters reported.

Apple and Google did not immediately respond to CNBC’s request for comment.

The law, sometimes referred to as the anti-Google law, has been subjected to parliament last August, according to Yonhap News.

Reports of media last week said the legislative and judicial committee of the National Assembly approved the revisions of a bill aimed at stopping the app store operators from forcing developers to use specific payment systems.

Regulatory control

Regulators around the world are focusing more on the application stores and the fees charged by Google and Apple developers – and the sentence in South Korea will likely be there first step towards greater control, according to Daniel Ives, by managing director of equity research at Wedbush Securities.

“It’s a potential watershed moment,” Ives said on CNBC “Asia Road Signs” on Monday ahead of the decision in Seoul. “Not necessarily for what does it mean in same, but for the ripple effect like shows they are not just words, but in reality actions “.

Ives added that while there may be an opportunity for monetization for others, such as telecom service providers, ultimately depend on how consumers would respond.

“The question is what will consumers do in the end? Why the path of the least resistance is to go through Apple and go through Google, and that’s what consumers have gotten used to, ”he said.

What happened?

Last year, Google said it was planning to impose a policy requesting developers which he distributed software on the Google Play Store – a digital service a download apps – to use its owner in- payment of the app system. This means that no other payment alternatives will be allowed.

Google billing system takes a 30% cut for most in-app purchases, in similar to what Apple does on its App Store.

The move has been criticized by developers and regulators have looked into the take from Google and Apple over the smartphone operating systems and the price they charge programmers who to develop apps for those platforms. Majority of the world, even smartphones run on Google’s Android operating system or on Apple’s iOS platform.

Both companies have since said they would cut their fees for Certain developers.

In the case of Apple, the company said it will halve expenses from 30% to 15%. for software developers with less than $ 1 million in annual net sale on the App Store. Google said in March would cut Google Play Store fees from 30% to 15% for the first million dollars a developer Do on the platform for year.

The creator of the iPhone last week also reversed course on another major App Store policy: He said developers on the App Store will be able to send emails to users and encourage them to pay directly, instead of through Apple – a move that was previously forbidden.

However, if users continue to make payments through the App Store, developers will have to use Apple billing system and pay a commission.

This is a break news. please check back for updates.

CNBC Kif Leswing And Sam Shead contributed to this report.

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