The South Korean National Assembly has approved a bill that would require Apple and Google to allow third-party payments in their app stores. Forbes writes about this with reference to The Wall Street Journal.
This is the first such document in the world, the newspaper noted. It will become law after being signed by the President of the country.
South Korea is taking action against the dominance of Google and Apple in the app market https://t.co/3aZzKI1Rld— City Telegraph (@0xCitytelegraph) August 31, 2021
The law prohibits major app market players from requiring the use of their own payment systems for in-app purchases.
It threatens the revenue of both companies from the commissions they receive on every transaction.
This commission is 30%, but both Apple and Google have reduced it to 15% for small developers who have less than $ 1 million in revenue from their respective app stores.
The law also prohibits app store owners from unreasonably delaying the approval of programs or removing them from the store.
Violation may result in a fine of up to 3% of the company’s revenue in South Korea.
The South Korean law will set a precedent for other regulators, including the United States and the European Union, who also want to take control of large global IT companies, Seoul National University business professor Yoo Ben Chung told WSJ.