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South Korea bans app payment monopolies by Apple, Google in world first
- The bill was approved by 180 votes to nil in the National Assembly
- Apple and Google have been criticised for charging up to 30 per cent commission on app sales and requiring their own payment systems be used
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South Korean MPs on Tuesday passed a law banning Apple and Google from forcing app developers to use the tech giants’ payment systems, effectively declaring their lucrative App Store and Play Store monopolies illegal.
The bill was approved by 180 votes to nil in the National Assembly, making South Korea the first major economy to pass legislation on the issue, in a move that could set a precedent for other jurisdictions around the world.
In the United States, three senators this month introduced a bill to loosen the tech firms’ grip on their stores, while in Europe, lawmakers are debating legislation that could force Apple to bring in alternatives to the App Store.
The South Korean measure comes as Apple and Google face global criticism for charging up to 30 per cent commission on app sales and requiring their own payment systems be used that collect a share of the transactions.
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The Korean law – locally dubbed the “Anti-Google Law” – will offer users a choice of app payment providers, allowing them to bypass charges set by the store owner.
“This law will certainly set a precedent for other countries, as well as app developers and content creators worldwide,” said Kang Ki-hwan at the Korea Mobile Internet Business Association.
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It is expected to come into force in September, according to reports.
We need this law to protect the diversity of our industry, where artists and creators ... can share their content without having to worry about the commission fees
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