Seoul — Apple Inc and Alphabet’s Google haven’t done enough to comply with South Korean law, which prohibits dominant app store operators from forcing app developers to use payment systems. The lawmaker who led the amendment told Reuters.
South Korea, the first country to impose legislation regulating payment policies for tech companies, released the first details of what it takes to comply with the law on Wednesday, according to a Korea Communications Commission (KCC) official. It is expected to do.
In August, it amended the Telecommunications Business Act to curb high-tech major market dominance and prevent major app store operators from charging fees for in-app purchases.
The law came into force in September, but the details of what constitutes compliance have been drafted by the KCC in the Enforcement Ordinance.
Apple has told the South Korean government that it is already compliant and does not need to change the app store policy nL4N2RB0QK. Google said it plans to allow third-party nL1N2RV03J payment systems in South Korea, but if users choose a different billing system, service charges to developers will only be reduced by 4 percent points.
Tech companies charge developers 30% of their sales for in-app transactions.
“Frankly, we’re not happy … Apple’s claim that it’s already compliant is pointless,” said Congressman Jo Seoung-lae, who led the fix.
“Excessive fees deprive developers of innovation opportunities … Congress should be informed as the government drafts detailed regulations to ensure accountability,” Joe said. ..
Apple and Google did not immediately respond to the request for comment.
“This is the world’s first law that has the opportunity to transform the market from the duopoly of Apple and Google,” Fortnite creator Epic Games CEO and Apple’s vocal critic Tim Sweeney told Reuters. Told.
Last year, Fortnite was kicked off the Apple and Google app stores after Epic introduced a new payment system.
However, even if Apple takes a similar position to Google by imposing charges while allowing external payments, it is still “competitive” for Apple and Google to charge and manage competing payment services. Epic Games doesn’t accept that stance because it “ruins points”. Added.
KCC was reported to Parliamentary Commission on Wednesday and is drafting details of the “finely woven” regulations of the ordinance that will come into force by March next year, KCC Vice Chairman Kim Hyun said on Tuesday. He spoke at a conference on fairness.
However, the penalties for violating the rules are not clear.
Early draft enforcement ordinances seen by Reuters detail fines of up to “2 percent of revenue” for violations of the law by app market operators.
“In other jurisdictions, these fines don’t really discourage companies like Apple and Google because they’re a drop in buckets,” said the Coalition for App Fairness Advisory Group. Said Meghan Di Muzio, Executive Director of.