Apple will allow alternative payment systems in South Korea App Store

Posted:
in iOS edited January 2022
Apple must now allow alternative payment systems in South Korea to maintain compliance with a new law that forbids tech companies like Google and Apple from forcing their own in-app payment systems.




In September, South Korea passed a law that would forbid app store operators, such as Apple and Google, from requiring developers to utilize first-party payment systems for in-app purchases.

Additionally, the amendment places prohibitions on app store rules that dissuade developers from marketing their wares on other platforms.

For the first time, Apple will now allow alternative payment systems in South Korea to comply with the new law. The company will provide an alternative payment system at a reduced service charge as part of the compliance plans turned into to the Korea Communications Commission (KCC).

The plans did not provide a date as to when the policy would take effect, nor did it disclose what the reduced service charge would be.

"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 as seen by The Korea Harold.

"Apple has a great deal of respect for Korea's laws and a strong history of collaboration with the country's talented app developers. Our work will always be guided by keeping the App Store a safe and trusted place for our users to download the apps they love," it added.

In recent years, Apple and Google have come under fire for their in-app payment systems. As a result, both have been heavily criticized for taking up to a 30 percent cut of sales and in-app purchases.

In November, a class-action lawsuit claimed Apple leveraged its popular iOS platform to create a closed ecosystem that locked customers into a software aftermarket saddled by App Store commissions, fees which continue to drive "supracompetetive" profits.

Facebook recently rolled out a new tool designed to help content creators earn money on its platform while sidestepping Apple's customary 30 percent cut of App Store transactions.

Read on AppleInsider
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Comments

  • Reply 1 of 23
    genovellegenovelle Posts: 1,481member
    Apple must now allow alternative payment systems in South Korea to maintain compliance with a new law that forbids tech companies like Google and Apple from forcing their own in-app payment systems.




    In September, South Korea passed a law that would forbid app store operators, such as Apple and Google, from requiring developers to utilize first-party payment systems for in-app purchases.

    Additionally, the amendment places prohibitions on app store rules that dissuade developers from marketing their wares on other platforms.

    For the first time, Apple will now allow alternative payment systems in South Korea to comply with the new law. The company will provide an alternative payment system at a reduced service charge as part of the compliance plans turned into to the Korea Communications Commission (KCC).

    The plans did not provide a date as to when the policy would take effect, nor did it disclose what the reduced service charge would be.

    "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 as seen by The Korea Harold.

    "Apple has a great deal of respect for Korea's laws and a strong history of collaboration with the country's talented app developers. Our work will always be guided by keeping the App Store a safe and trusted place for our users to download the apps they love," it added.

    In recent years, Apple and Google have come under fire for their in-app payment systems. As a result, both have been heavily criticized for taking up to a 30 percent cut of sales and in-app purchases.

    In November, a class-action lawsuit claimed Apple leveraged its popular iOS platform to create a closed ecosystem that locked customers into a software aftermarket saddled by App Store commissions, fees which continue to drive "supracompetetive" profits.

    Facebook recently rolled out a new tool designed to help content creators earn money on its platform while sidestepping Apple's customary 30 percent cut of App Store transactions.

    Read on AppleInsider
    Apple has made it clear, they will get their cut another way. 
    watto_cobra
  • Reply 2 of 23
    BeatsBeats Posts: 3,073member
    This is extortion of an American company.

    Would love for the U.S. to ban knockoff iPhones/knockoff iPads from South Korea and their wannabe App Stores. Of course it would never happen because Americans have this strange self-hatred fetish.
    danoxmagman1979watto_cobra
  • Reply 3 of 23
    Isn’t Samsung has their own App Store? But I am sure this law won’t apply to them, given how corrupt Korean government is. 
    magman1979killroywatto_cobra
  • Reply 4 of 23
    Apple's 30% and 15% commission rates have always included more services than just payment processing, so why is payment processing the only part of the services that is treated as if it needs an alternative? That's what makes these rule changes sound like it's mainly banks/financial companies lobbying the South Korean government for a piece of the App Store action. 
    edited January 2022 dhawkins541magman1979viclauyyckillroywatto_cobra
  • Reply 5 of 23
    lkrupplkrupp Posts: 10,557member
    We’ll see what Apple does to get around this. Surely the South Korean government and developers cannot think Apple should maintain the App Store gratis for all comers.
    magman1979killroywatto_cobra
  • Reply 6 of 23
    darkvaderdarkvader Posts: 1,146member
    I'm not surprised.  Apple's payment processing rates are highway robbery.

    But what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    williamlondonlkrupp
  • Reply 7 of 23
    22july201322july2013 Posts: 3,615member
    darkvader said:
    what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    Sure, Apple should allow users to install Android, then you can do whatever you want. After all, Apple already allows third party operating systems on its Macs.
  • Reply 8 of 23
    flydogflydog Posts: 1,129member
    darkvader said:
    I'm not surprised.  Apple's payment processing rates are highway robbery.

    But what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    Apple doesn't charge a "payment processing" fee.  It charges a comission, and in exchange for that comission Apple provides an IDE and SDKs, distributes and markets that apps, and processes payments from customers.  And in no way shape or form is 15% (or even 30%) "highway robbery," considering what it costs a developer to handle all that on their own. 
    ihatescreennamesGG1magman1979williamlondonviclauyycwatto_cobra
  • Reply 9 of 23
    flydogflydog Posts: 1,129member
    Beats said:
    This is extortion of an American company.

    Would love for the U.S. to ban knockoff iPhones/knockoff iPads from South Korea and their wannabe App Stores. Of course it would never happen because Americans have this strange self-hatred fetish.
    How about looking up what words mean before using them in a sentence. 
    muthuk_vanalingamtokyojimuGG1lkruppgreginpraguecuriousrun8watto_cobra
  • Reply 10 of 23
    chadbagchadbag Posts: 2,007member
    darkvader said:
    I'm not surprised.  Apple's payment processing rates are highway robbery.

    But what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    Apple doesn't charge "payment processing" fee and you don't know what rate they charge as part of their commission for "payment processing."  
    magman1979williamlondonwatto_cobra
  • Reply 11 of 23
    magman1979magman1979 Posts: 1,299member
    darkvader said:
    I'm not surprised.  Apple's payment processing rates are highway robbery.

    But what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    That's already been done, called the trash can OS, go have at with that virus-infested garbage platform if that's what you want.
    williamlondonviclauyycwatto_cobra
  • Reply 12 of 23
    The details of this will be telling. If it works out and Apple is able to still take a competitive cut of those revenues, it will become the norm worldwide very quickly. As I understand it, the law only applies to in-app payments. So it’s got nothing to do with the App Store. 
    watto_cobra
  • Reply 13 of 23
    The details of this will be telling. If it works out and Apple is able to still take a competitive cut of those revenues, it will become the norm worldwide very quickly. As I understand it, the law only applies to in-app payments. So it’s got nothing to do with the App Store. 
    True, but since many if not most Apps have now moved to “freemium”, free to download but in-app payment for premium features, Apple may not get paid to maintain these Apps. 
    watto_cobra
  • Reply 14 of 23
    darkvader said:
    I'm not surprised.  Apple's payment processing rates are highway robbery.

    But what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    That's already been done, called the trash can OS, go have at with that virus-infested garbage platform if that's what you want.
    You referring to the open platform macOS!? Funny, I've been using macOS for decades without it becoming a "virus-infested garbage platform". but you go ahead and keep chugging that kool-aid.

    For those arguing about Apple's income for the SDKs, that's why there's a developer fee. Which also allows them to collect from companies/people that only release free or ad based apps.
    darkvader
  • Reply 15 of 23
    If true, then every other country will follow. 

    Apple will cave to stupid ideas from jealous companies. 

    If south Korea wants to pull this crap, pull out from South Korea. 

    Sad sad day. 

    iOS is different from Mac OS. 

    My phone is inherently ridiculously personal snd private. 

    Unlike my Mac, my phone handles ALL of my most personal communications. The less hands my info passes through the better. 

    I WANT a walled garden when it comes to my phone. Even with my Mac to a degree, but far less so compared to my phone. My Macs is are s combination of professional workhorse, personal use, and tinker toy. That must never be the case with my phone. 

    On my Mac, I want the ability to add software from anywhere if I want. On my phone, forget that. I NEED SECURITY, privacy, and confidence that what I add to it is vetted from the source I trust to do so. 

    Of course in a government that is increasingly becoming a dictatorship, the idea of privacy snd security is becoming a foreign concept. 

    edited January 2022 maximarawatto_cobra
  • Reply 16 of 23
    darkvader said:
    I'm not surprised.  Apple's payment processing rates are highway robbery.

    But what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    Do you get tired of making stupid comments?

    JFC, what a maroon.
    watto_cobra
  • Reply 17 of 23
    sflocalsflocal Posts: 6,105member
    darkvader said:
    I'm not surprised.  Apple's payment processing rates are highway robbery.

    But what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    Why are you still here?
    williamlondontenthousandthingswatto_cobra
  • Reply 18 of 23
    DangDave said:
    The details of this will be telling. If it works out and Apple is able to still take a competitive cut of those revenues, it will become the norm worldwide very quickly. As I understand it, the law only applies to in-app payments. So it’s got nothing to do with the App Store. 
    True, but since many if not most Apps have now moved to “freemium”, free to download but in-app payment for premium features, Apple may not get paid to maintain these Apps. 
    It’s absolutely true that in-app purchase revenues are a very big slice of Apple’s pie that maintains their support for third-party apps on iOS and iPadOS. Cook has said as much, that Apple will be forced to find other ways to collect that slice. That’s why the details will be telling.

    Let’s say the code for in-app payments requires an Apple API that tracks the payments, regardless of who is processing them, and Apple starts billing payment processing separately from its slice of the pie. So then it’s just pay me now or pay me later. How many developers are going to bother? Only those who benefit from collecting information about their customers. Finally, and this is an important detail — Can Apple require developers to give users the option of using Apple’s payment processing? Can users be forced to expose their data? 
    edited January 2022 maximarawatto_cobra
  • Reply 19 of 23
    darkvaderdarkvader Posts: 1,146member
    flydog said:
    darkvader said:
    I'm not surprised.  Apple's payment processing rates are highway robbery.

    But what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    Apple doesn't charge a "payment processing" fee.  It charges a comission, and in exchange for that comission Apple provides an IDE and SDKs, distributes and markets that apps, and processes payments from customers.  And in no way shape or form is 15% (or even 30%) "highway robbery," considering what it costs a developer to handle all that on their own. 

    It's not a "commission".  It's a payment processing fee.  Apple does NOTHING for in-app purchases beyond taking the money and telling the developer "you got a payment of $x for feature y".  The developer then handles everything else.  And yes, 15% is highway robbery, considering PayPal's cut for doing exactly the same thing is less than 3%, actual credit card merchant accounts charge even less.


    williamlondon
  • Reply 20 of 23
    darkvader said:
    flydog said:
    darkvader said:
    I'm not surprised.  Apple's payment processing rates are highway robbery.

    But what REALLY needs to happen is opening the iPhone to allow app installation from any source of the user's choosing.  I'd have no problem with Apple charging 50% on their store if I could bypass it and install apps without it.
    Apple doesn't charge a "payment processing" fee.  It charges a comission, and in exchange for that comission Apple provides an IDE and SDKs, distributes and markets that apps, and processes payments from customers.  And in no way shape or form is 15% (or even 30%) "highway robbery," considering what it costs a developer to handle all that on their own. 

    It's not a "commission".  It's a payment processing fee.  Apple does NOTHING for in-app purchases beyond taking the money and telling the developer "you got a payment of $x for feature y".  The developer then handles everything else.  And yes, 15% is highway robbery, considering PayPal's cut for doing exactly the same thing is less than 3%, actual credit card merchant accounts charge even less.
    Writing something in all caps doesn’t make it true. In my view, this is a ban-hammer-worthy comment. It demonstrates a willful, conscious disregard for the facts.

    Apple needs to generate a certain amount of revenue from third-party apps on its mobile platforms in order to support them and, yes, profit from providing third-party developers with a livelihood. They use this simple system to generate that revenue. Yes, it is unbalanced, unfair, and disproportionate for developers who use in-app payments. But it’s transparent and easily understood. It was a revolutionary approach when it came out — nothing like it had ever been done. Third-party developers were fleeced at every turn. Now Apple fleeces them, but there are no surprises, no hidden costs or other tricks.
    edited January 2022 watto_cobra
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