Apple will allow alternative payment systems in South Korea App Store
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
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
Comments
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.
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.
JFC, what a maroon.
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?
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.