Hong Kong / Seoul (CNN Business) — Google and Apple will have to allow app developers to use alternative payment systems under legislation just passed by South Korea that could set the stage for similar action in other countries. The amended Telecommunications Business Act was approved by the country’s National…
Google and Apple will have to allow app developers to use alternative payment systems under a new South Korean legislation. Google Play Store and Apple App Store icons are seen respectively on a Google Pixel smartphone and an iPhone.
The amended Telecommunications Business Act was approved by the country’s National Assembly on Tuesday, with the backing of President Moon Jae-in’s party. It will become law once President Moon signs it.
Under the new law, developers will be able to select which payment systems to use to process in-app purchases, meaning they may be able to bypass hefty charges imposed by the two longtime leaders.
A bill passed Tuesday by South Korea’s National Assembly is the first in the world to dent the tech giants’ dominance over how apps on their platforms sell their digital goods. It will become law once signed by President Moon Jae-in, whose party strongly endorsed the legislation
The South Korean bill bans app store operators from “unfairly using their market position to force a certain manner of payment” upon businesses. Once enacted, violators could be fined up to 3% of their annual sales, in addition to up to 300 million Korean won ($257,000) in penalties.
The legislation has been dubbed the “anti-Google law” in the country, as politicians argue that the Silicon Valley behemothhas taken advantage of itslongstanding dominance and undercut developers.
The legislation has been dubbed the “anti-Google law” in the country, as politicians argue that the Silicon Valley behemothhas taken advantage of itslongstanding dominance and undercut developers.In July, South Korean lawmaker Jun Hye-sookurged parliament to move the bill along quickly, calling it “a law to prevent Google from lording [its position] over others,” and a move that would “protect IT developers from the platforms lording over them.”
