It will become law once signed by President Moon Jae-in, whose party strongly endorsed the legislation.
The WSJ reports that the vote has now passed.Ī bill passed Tuesday by South Korea’s National Assembly is the first in the world to dent the tech giants’ dominance over how apps on their platforms sell their digital goods. The vote was originally set to happen yesterday, but was delayed by a day due to other legislation over-running its scheduled time. It was last week reported that an amendment to South Korea’s Telecommunications Business Act would force both Apple and Google to permit the use of third-party payment platforms in their app stores. App Store payment platform monopoly ending
The company did make a massive U-turn when it cut its commission from 30% to 15% for the vast majority of developers, but has so far stuck to its guns when it comes to its anti-steering policy, offering only a tiny concession to settle a recent lawsuit. Many developers would like the option to bypass Apple as a payment platform, and an increasing number of governments seem sympathetic to this.Īpple’s view remains that it created the market for iOS apps, and is entitled to be rewarded for this, and for the opportunity it offers to developers. An iOS app is essential to reach a large slice of the population.
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This is because it is not realistic for most developers to launch an Android app but not an iOS one. While Apple claims that the relevant market definition is “smartphone apps,” in which it does not have a monopoly, many regulators and legislators around the world view the market definition as “iOS apps,” in which it does. We yesterday outlined the background to this.Īpple’s monopoly on the sale of iOS apps and in-app purchases is the biggest antitrust concern about the tech giant. This is expected to encourage other countries to enact similar laws.Ĭurrently, the App Store is the only way for developers to sell iOS apps, and they are not allowed to direct users to any third-party payment platform within their apps. Apple’s App Store payment platform monopoly is ending in South Korea after an antitrust law was passed, affecting both the iPhone maker and Google.
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