South Korea says Apple's alternative payment plan 'lacks detail'
South Korean regulators want better, more detailed compliance plans from both Apple and Google over opening up their App Stores to outside payment methods.
Following South Korea's passing of a law requiring tech companies to allow alternative payment systems, Apple officially submitted its plans in January 2022. Now, however, local authorities are reportedly saying that neither Apple nor Google have shown sufficient detail.
According to Reuters, a South Korea official has said that Apple's plans "still lacks concrete detail." The unnamed official from the Korea Communications Commission (KCC) said that Apple's submitted plans had been more of a general intention of allowing alternatives.
The KCC is reportedly in talks with Apple over specifics of how the alternative systems would work. Apple has also said that it will offer such systems with a reduced service charge, but did not say what that was.
Google's submitted plan, in comparison, did say that it would reduce its service charge by 4% for developers using an alternative. However, the official said the KCC was aware developers were concerned by the small reduction.
The KCC is waiting for more information from Google to establish how readily a developer could switch to a new system, and how likely they are.
"As a result of any policy," said the official, "if app developers find it realistically difficult to use an alternative payment system and resort to using the dominant app store operator's payment system, it would not fit the law's purpose."
The specific rules of new law, an amendment to South Korea's Telecommunication Business Act, are to be drawn up by March 15.
Read on AppleInsider
Following South Korea's passing of a law requiring tech companies to allow alternative payment systems, Apple officially submitted its plans in January 2022. Now, however, local authorities are reportedly saying that neither Apple nor Google have shown sufficient detail.
According to Reuters, a South Korea official has said that Apple's plans "still lacks concrete detail." The unnamed official from the Korea Communications Commission (KCC) said that Apple's submitted plans had been more of a general intention of allowing alternatives.
The KCC is reportedly in talks with Apple over specifics of how the alternative systems would work. Apple has also said that it will offer such systems with a reduced service charge, but did not say what that was.
Google's submitted plan, in comparison, did say that it would reduce its service charge by 4% for developers using an alternative. However, the official said the KCC was aware developers were concerned by the small reduction.
The KCC is waiting for more information from Google to establish how readily a developer could switch to a new system, and how likely they are.
"As a result of any policy," said the official, "if app developers find it realistically difficult to use an alternative payment system and resort to using the dominant app store operator's payment system, it would not fit the law's purpose."
The specific rules of new law, an amendment to South Korea's Telecommunication Business Act, are to be drawn up by March 15.
Read on AppleInsider
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