South Korean lawmakers vote to curb Google, Apple commission dominance on in-app purchases
- Politicians are considering an amendment of the Telecommunications Business Act, or ‘Anti-Google law’
- Apple Inc said the bill ‘will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections’
A South Korean parliamentary committee voted on Wednesday to recommend amending a law, a key step toward banning Google and Apple from forcibly charging software developers commissions on in-app purchases, the first such curb by a major economy.
Apple Inc and Alphabet Inc’s Google have both faced global criticism because they require software developers using their app stores to use proprietary payment systems that charge commissions of up to 30 per cent.
In a statement on Tuesday, Apple said the bill “will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections”, hurt user trust in App Store purchases and lead to fewer opportunities for South Korean developers.
Wilson White, senior director of public policy at Google, said “the rushed process hasn’t allowed for enough analysis of the negative impact of this legislation on Korean consumers and app developers”.
Experts said app store operators could assure security in payment systems other than their own by working with developers and other companies.
“Google and Apple aren’t the only ones that can create a secure payment system,” said Lee Hwang, a Korea University School of Law professor specialising in competition law.
