South Korea App Store payment bill final vote delayed until further notice

AppleInsider

A South Korean parliamentary committee has voted in favor of preventing big tech from forcing the use their in-app payment systems in App Stores, but it isn't clear when -- or if -- the final vote and presidential ratification will take place.

App Store

According to South Korean news agency Yonhap, the bill was passed as expected, by the legislation and judiciary committee of the country's National Assembly. This was the last hurdle before a final vote before a plenary session of the full assembly, and ultimately ratification by President Moon Jae-in.

That plenary session was originally scheduled to follow Wednesday's committee vote. However, it has now been delayed until further notice.

The bill, which amends South Korea's Telecommunications Business Act, is being dubbed the "Anti-Google law" by local media for its targeted language against owners of digital app stores. It passed, it will force Apple and Google to allow alternative payment methods for in-app purchases, as well as prevent app store rules from promoting alternative and self-hosted payment methods.

"User trust in App Store purchases will decrease as a result of this proposal -- leading to fewer opportunities for the over 482,000 registered developers in Korea who have earned more than KRW8.55 trillion to date with Apple," Apple said in a statement.

A very similar declaration by Google was made on Monday. A Google spokeswoman said that the company believed the legislation would harm consumers and software developers.

Trade groups associated with Apple and Google are also fighting the measure. In October, the Information Technology Industry Council urged the U.S. Trade Representative to note concerns about the South Korean bill in an annual report on foreign trade. The group said passage of the legislation could violate joint trade agreements.

The legislation passed committee scrutiny in the Korean National Assembly in July with minor resistance. The early Wednesday vote precedes being sent to the full assembly and ultimate ratification by President Moon Jae-in.

The Coalition for App Fairness is in favor of the bill. It hopes that the bill will prompt the US to pass similar legislation.

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nizzard

I read a story two days ago that Apple had gone to the White House to stop this.  I wonder what they had to concede to get the WH to stop this bill.   More back doors?  Unfettered access to all customer data?   This didn’t just get delayed indefinitely for no reason.  I have the suspicion that many countries are doing this to extort Apple and Google to bend to their wills.  Every time they want something from big tech, they just introduce a new bill - radical in-app payment changes, App Store “choice,” mandated charging ports, etc.  Want to undermine security and spy on citizens?  Dont have the FBI take the fight to congress -  just introduce a law threatening their lucrative business models.  Done!  Because they know it works.  For as “woke” as Apple and Google fancy themselves, they will always choose earnings over scruples. 

fred1

 “I wonder what they had to concede to get the WH to stop this bill.”

Lots and lots of campaign contributions for starters. 

darelrex

Hey, doesn't S. Korea have big companies that do business in the USA? Like, Samsung and Hyundai, just to name two? Maybe the U.S. should pass a law requiring them to offer U.S. consumers a special, lower, pricing tier where the company makes zero profit (or even a significant loss) on the sale. That would teach them a lesson in not taking such a big tax on their own products, over which they currently exert unfair, monopolistic, gate-keeper, toll-taker, rent-seeker control.

genovelle

In public Apple says, this bill will hurt consumers and developers. In private the add, because we will be forced to cut off access to apps in your country altogether. 

mike1

nizzard said:

I read a story two days ago that Apple had gone to the White House to stop this.  I wonder what they had to concede to get the WH to stop this bill.   More back doors?  Unfettered access to all customer data?   This didn’t just get delayed indefinitely for no reason.  I have the suspicion that many countries are doing this to extort Apple and Google to bend to their wills.  Every time they want something from big tech, they just introduce a new bill - radical in-app payment changes, App Store “choice,” mandated charging ports, etc.  Want to undermine security and spy on citizens?  Dont have the FBI take the fight to congress -  just introduce a law threatening their lucrative business models.  Done!  Because they know it works.  For as “woke” as Apple and Google fancy themselves, they will always choose earnings over scruples. 

nizzard

mike1 said:

nizzard said:

I read a story two days ago that Apple had gone to the White House to stop this.  I wonder what they had to concede to get the WH to stop this bill.   More back doors?  Unfettered access to all customer data?   This didn’t just get delayed indefinitely for no reason.  I have the suspicion that many countries are doing this to extort Apple and Google to bend to their wills.  Every time they want something from big tech, they just introduce a new bill - radical in-app payment changes, App Store “choice,” mandated charging ports, etc.  Want to undermine security and spy on citizens?  Dont have the FBI take the fight to congress -  just introduce a law threatening their lucrative business models.  Done!  Because they know it works.  For as “woke” as Apple and Google fancy themselves, they will always choose earnings over scruples. 

Please, then.  Provide your opinion rather than this stupid response.

longfang

nizzard said:

I read a story two days ago that Apple had gone to the White House to stop this.  I wonder what they had to concede to get the WH to stop this bill.   More back doors?  Unfettered access to all customer data?   This didn’t just get delayed indefinitely for no reason.  I have the suspicion that many countries are doing this to extort Apple and Google to bend to their wills.  Every time they want something from big tech, they just introduce a new bill - radical in-app payment changes, App Store “choice,” mandated charging ports, etc.  Want to undermine security and spy on citizens?  Dont have the FBI take the fight to congress -  just introduce a law threatening their lucrative business models.  Done!  Because they know it works.  For as “woke” as Apple and Google fancy themselves, they will always choose earnings over scruples. 

Are you implying that the South Korean government is a puppet of the United States?

ericthehalfbee

The fact that South Korean legislators met with two people from Match and the Coalition for App Fairness tells me all I need to know.

I wonder if they were involved in drafting the legislation (like they were in North Dakota and Arizona)? Since when does one party get to write a bill? That’s like getting criminals to write bills on sentencing reform.

viclauyyc

ericthehalfbee said:

The fact that South Korean legislators met with two people from Match and the Coalition for App Fairness tells me all I need to know.

I wonder if they were involved in drafting the legislation (like they were in North Dakota and Arizona)? Since when does one party get to write a bill? That’s like getting criminals to write bills on sentencing reform.

Not to mention, South Korean politicians are famous for corruption. Pretty much all their Ex presidents are either in jail for corruption or suicide. 

magman1979

nizzard said:

mike1 said:

nizzard said:

I read a story two days ago that Apple had gone to the White House to stop this.  I wonder what they had to concede to get the WH to stop this bill.   More back doors?  Unfettered access to all customer data?   This didn’t just get delayed indefinitely for no reason.  I have the suspicion that many countries are doing this to extort Apple and Google to bend to their wills.  Every time they want something from big tech, they just introduce a new bill - radical in-app payment changes, App Store “choice,” mandated charging ports, etc.  Want to undermine security and spy on citizens?  Dont have the FBI take the fight to congress -  just introduce a law threatening their lucrative business models.  Done!  Because they know it works.  For as “woke” as Apple and Google fancy themselves, they will always choose earnings over scruples. 

Please, then.  Provide your opinion rather than this stupid response.

How about you take your stupid FUD and take it somewhere else, that face palm is all that's needed

jpjhun

Don't be duped into thinking S. Korea is doing the right thing to curb anti-competitive behaviors (high app store fees) of google & apple. S.Korea is protecting its own business interest. They have a mega conglomerate called Kakao which is like whatsapp but has the functionality of wechat (payments, ride hailing, webtoons, food delivery, advertising, in-app games, ecommerce etc). A lot of these apps utilize a loophole that directs payments outside of the app store that make customers purchase 'credits'. Customers can then utilize these credits to purchase products without Kakao paying the 30% fee to google/apple. 

Not too long ago, google stated that Kakao must comply with their payment policy and cannot utilize the loopholes any longer or face being booted from the app store. Soon after, Kakao must have lobbied its parliament to pass this new law. I'm not saying that the 30% fee from google/apple is just, but creating a new law just because Kakao doesn't want to play by the rules cannot be the correct move when S.Korea is highly integrated into the global economy. The app store economy isn't unique to google/apple. In fact, many companies including salesforce, adobe, and roblox have a highly profitable app store economy. Allowing developers to officially bypass the 'tax' is ridiculous.

Kakao isn't fortnite. They can't exist out of the smartphone economy and google/apple can crush their business in a heartbeat. google & apple is not going to back down and allow precedence of allowing developers to bypass their payment system, nor is the U.S. going to support a law that diminishes their tax revenue unless the U.S. itself finds the businesses to be anti-competitive. The current delay in the parliament is probably due to the U.S. embassy giving a warning to S.Korea, and S.Korea probably wanting to negotiate the terms. Because they also know that this new law is ridiculous.