South Korea has become the first country in the world to attack the lucrative commissions charged by Google and Apple’s app stores, after passing a law that will let mobile phone users pay software developers directly for their apps.
Despite heavy lobbying by the tech giants, South Korea’s national assembly on Tuesday passed what has been dubbed the “anti-Google bill”; it will become law once signed by President Moon Jae-in.
The law bans Google and Apple, as well as other app store operators, from requiring users to pay for apps with their own in-app purchasing systems.
It also bans app stores from delaying approvals from apps or “inappropriately” removing them from their app stores, and from insisting on exclusivity with app developers. If they fail to comply, app stores can be fined up to 3 per cent of their revenue in South Korea.
Apple and Google at present take a commission of up to 30 per cent on sales of digital goods through their app stores, and of in-app purchases, such as subscriptions.