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South Korea ends app store payment monopolies, a world first

2021-08-31T12:12:03.734Z


The bill was adopted unanimously by the deputies. South Korean lawmakers passed a law on Tuesday banning Apple and Google from forcing app developers to use the payment systems of the two tech giants, effectively declaring their lucrative monopolies on the App Store and the Play store. The bill passed 180 to none, making South Korea the first major economic power to pass such legislation, which could set a global precedent. This South Korean in


South Korean lawmakers passed a law on Tuesday banning Apple and Google from forcing app developers to use the payment systems of the two tech giants, effectively declaring their lucrative monopolies on the App Store and the Play store.

The bill passed 180 to none, making South Korea the first major economic power to pass such legislation, which could set a global precedent.

This South Korean initiative comes as Apple and Google are, across the planet, under fire from critics, accused in particular of levying a 30% commission on transactions made via their payment systems, which have become essential.

The South Korean text - locally known as the "anti-Google law" - will offer users the option of choosing a payment system when purchasing applications.

"

This law will certainly set a precedent for other countries, as well as for app publishers and content creators around the world,

" Kang Ki-hwan of the Korea Mobile Internet Business Association told AFP. .

Anger of Korean creators against Google

Later this year, Google plans to impose a global obligation on developers to use its payment system - with a 30% commission above a certain threshold - for in-app purchases.

In South Korea, it also plans to charge commissions on all content payments from October, ending an exemption whereby commissions were only due for online games.

The announcement angered several South Korean artists and creators, web fiction writers and webtoons artists, who accuse Google of "

abuse of power

" and campaigned for the news. law.

Apple and Google believe the fees charged are justified, saying they allow safe shopping and allow app developers to reach users across the globe.

Ahead of the debate in the South Korean National Assembly, Apple told AFP that the law could put people who buy apps at risk of fraud, invade their privacy and make parental controls less effective.

"

We believe that user confidence in App Store purchases will decline after this proposal, which will reduce opportunities for Korea's more than 482,000 app makers who have earned more than 8.550 billion won ( 6.2 billion euros) to date with Apple,

”said the American giant in a statement.

Google Korea did not respond to AFP's requests for comment.

Source: lefigaro

All news articles on 2021-08-31

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