South Korea will be the first country to end the dominant position of Apple and Google in payments on their mobile platforms. App developers can now use their own payment systems in digital app stores instead of those of the tech giants. This means that the developers can circumvent the 30% commission.
The law passed on Tuesday is called the ‘anti-Google law’, because it seems to have come about in response to a decision by the American company. In October, Google wanted to introduce a 30 percent commission on purchases in its App Store in South Korea. This was exempted for years.
Apple and Google together manage most of the world’s smartphones with their operating systems. The companies typically charge app developers 30 percent commission on sales in their app stores and prohibit alternative payment methods. Apple and Google are against the new legislation. Google called the legislative process in South Korea rather rushed. Apple has said the law will undermine parental control, privacy and trust.