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Technology
APPLE SUBMITS PLAN FOR ALTERNATIVE PAYMENT SYSTEMS IN SOUTH KOREA
Regulator has asked tech giant to comply with law that took effect in September
To comply with South Korean law, Apple will allow third-party payment systems on
its App Store in the country © Reuters
January 12, 2022 11:45 JST | South Korea
CopyCopied
SEOUL (Reuters) -- South Korea's telecommunications regulator said on Tuesday
Apple Inc had submitted plans to allow third-party payment systems on its App
Store to comply with a law banning major app store operators from forcing
software developers to use their payments systems.
The Korea Communications Commission (KCC) had requested Apple and Alphabet's
Google to submit compliance plans after the bill was passed in August last year
and went into effect in September.
Google announced its plans to allow alternative payment systems in South Korea
in November to comply with the amended Telecommunication Business Act, dubbed
the "anti-Google law".
"We look forward to working with the KCC and our developer community on a
solution that benefits our Korean users," Apple said in a statement, but did not
provide details such as timeline of when the new payment systems will take
effect or commission fee rates.
It plans to discuss further details with the KCC, the regulator said. The KCC
said Apple plans to allow alternative payment systems for a lower service fee
versus the current 30% commissions.
In the United States, the iPhone maker is wading through a lawsuit brought by
"Fortnite" creator Epic Games in 2020 when the game maker tried to get around
Apple's 30% fee on in-app purchases by launching an in-app payment system of its
own.
A U.S. judge last year ordered Apple to change its App Store rules, which ban
developers from including links in buttons to outside payment systems over using
Apple's own.
"I hope Apple's move here (in South Korea) isn't another fake opening of payment
systems as Google recently announced," Epic Games CEO Tim Sweeney said in a
tweet.
Apple said it paid developers a total of $260 billion through its App Store
since its launch in 2008, implying a $60 billion payout to developers in 2021.
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