South Korea to prohibit Big Tech in-app payment system monopolies
SEOUL, South Korea – South Korea’s National Assembly approved legislation on Tuesday that bans app store operators such as Google and Apple from forcing developers to use their in-app payment systems.
South Korea is reportedly the first country to pass such a bill. It becomes law when it is signed by the president, whose party has backed the legislation.
The tech giants have faced criticism over their practice of requiring app developers to use in-app purchasing systems, for which the companies receive commissions of up to 30%.
The legislation prohibits the app market operators from using their monopolies to require such payment systems, which means they must allow alternative ways to pay. It says the ban is aimed at promoting fairer competition.
The bill aims to prevent any retaliation against developers by banning the companies from imposing any unreasonable delay in approving apps.
Google said it is considering how to comply with the legislation.
“Google Play provides far more than payment processing, and our service fee helps keep Android free, giving developers the tools and global platform to access billions of consumers around the world,” it said in a statement.
“And just as it costs developers money to build an app, it costs us money to build and maintain an operating system and app store.”