South Korean legislation could force external payment options onto App Store

Posted:
in General Discussion
The South Korean government is set to introduce legislation that will force Apple and Google to allow alternate payment options, and the Coalition for App Fairness is lobbying for passage.

Coalition for App Fairness hopes South Korean bill will spur U.S. legislators
Coalition for App Fairness hopes South Korean bill will spur U.S. legislators


The South Korean bill would be the first of its kind around the globe, one that would prevent app market owners from setting restrictions around payment systems. The Coalition for App Fairness hopes this bill will set a precedent that will spur U.S. legislators to do the same.

According to Yonhap News, Match Group SVP and Coalition founder Mark Buse met with Korean Democratic Party lawmakers at the National Assembly. He supported the nascent bill and cited that at least 15 states had made similar legislative moves surrounding app payments.

The new bill will amend the Telecommunications Business Act in a move approved by the National Assembly's Science, ICT, Broadcasting and Communications Committee. This decision was made after Google's move to replicate Apple's App Store rules by requiring developers to use Google's payment system and pay up to 30% of revenue.

The outcry from developers forced Google to push back enforcement of its new policy to March 2022, but legislators may step in. Both Google and Apple argue that such amendments may put users at risk of fraud.

The Coalition for App Fairness consists of several companies, many of which have some negative history with Apple. Spotify, Epic Games, and Tinder are all a part of the coalition.

If the South Korean government passes this legislation, it could mean a big increase in global pressure as other countries adopt similar laws around payment systems. Apple and Google may be compelled to enable alternate payment systems or exit business in countries with such laws.

Read on AppleInsider

Comments

  • Reply 1 of 11
    22july201322july2013 Posts: 2,584member
    If the South Korean government passes this legislation, it could mean a big increase in global pressure as other countries adopt similar laws around payment systems. Apple and Google may be compelled to enable alternate payment systems or exit business in countries with such laws.
    That last phrase is what I've been arguing on this site for years, and most of the time I've been ridiculed for thinking that Apple would even consider that. Thanks for saying that.

    What would happen if both Apple's iOS and Google's Android were no longer functional in South Korea?
    magman1979
  • Reply 2 of 11
    p-dogp-dog Posts: 100member
    Ah, I see the South Korean government is bending over and twerking at the behest of one of its biggest corporate pimps: Samsung.
    StrangeDaysbloggerbloglkruppmagman1979davenwatto_cobra
  • Reply 3 of 11
    avon b7avon b7 Posts: 5,933member
    If the South Korean government passes this legislation, it could mean a big increase in global pressure as other countries adopt similar laws around payment systems. Apple and Google may be compelled to enable alternate payment systems or exit business in countries with such laws.
    That last phrase is what I've been arguing on this site for years, and most of the time I've been ridiculed for thinking that Apple would even consider that. Thanks for saying that.

    What would happen if both Apple's iOS and Google's Android were no longer functional in South Korea?
    What would 'exit business' mean for Apple if they stopped selling handsets in any particular country that introduced legislation like this?

    It would mean chaos for its business model. Especially as other countries around the globe are likely to force Apple to open up the NFC hardware for competition to exist. 

    Do you think they would stop selling around the world?

    No.

    No country would miss Apple and Android users can already choose whichever payment option they prefer. 

    'Exit business' would simply be to stop Apple Pay in those countries. Nothing else.

    The problem with that, is that it would turn users off the platform as Apple wouldn't make the NFC hardware available to other companies. It would be as if NFC based payments simply didn't exist on iPhones. 

    Far better for Apple to simply comply with legislation and continue selling in those markets. 
    edited August 3 elijahgmuthuk_vanalingambloggerblog
  • Reply 4 of 11
    Does anyone really think that Epic et al will reduce their prices if alternative payment options are mandated?
    watto_cobra
  • Reply 5 of 11
    Does anyone really think that Epic et al will reduce their prices if alternative payment options are mandated?
    Of course they won’t lower there prices. They will just get a larger income from their sales when they don’t have to pay Apple. I guess Apple will have to increase the annual price for being able to have an app in the AppStore making it more expensive for small developers to release apps. 
    watto_cobra
  • Reply 6 of 11
    longfanglongfang Posts: 254member
    nbuchert said:
    Does anyone really think that Epic et al will reduce their prices if alternative payment options are mandated?
    Of course they won’t lower there prices. They will just get a larger income from their sales when they don’t have to pay Apple. I guess Apple will have to increase the annual price for being able to have an app in the AppStore making it more expensive for small developers to release apps. 
    Or they could adopt a modified Unreal engine licensing model. With per seat pricing to develop apps based on revenue generated.
    applguywatto_cobra
  • Reply 7 of 11
    crowleycrowley Posts: 8,875member
    Does anyone really think that Epic et al will reduce their prices if alternative payment options are mandated?
    The update they pushed out that started the whole ruckus had Epic charging $7.99 for things that cost $9.99 using Apple's IAP.

    And Epic have been very aggressive in pricing and free promotions on their Epic Store.

    So yes, I think they will reduce prices.  Everything they've said and done suggest that they will.
    muthuk_vanalingam
  • Reply 8 of 11
    Notice Epic only dropped their pricing from $9.99 to $7.99. That is 20%.  They cry about apple taking 30%, and go try to go around them and only discount by 20%.  
    Not one single but if this BS is about the consumers, nor is it legitimately pushed by us consumers.  This is phallus measuring by corporate CEO’s and they are trying to run one of the biggest scams.  The consumer is significantly safer with only 1 payment, not multiple app stores, or multiple payment systems.  I certainly have no desire to have my credit card info in the hands of any developer.  I would rather they focused their energy and time on making better apps, than making sure their payment system was secure.  How many payment systems databases have been hacked??? I haven’t seen one story involving apples payment system being hacked and exposing sensitive user information.  The CEOs and Council for App Fairness is an utter farce and only represents the CEOs of the large companies in reality.  I wish these politicians would get clue.  
    davenwatto_cobra
  • Reply 9 of 11
    crowleycrowley Posts: 8,875member
    docbburk said:
    Notice Epic only dropped their pricing from $9.99 to $7.99. That is 20%.  They cry about apple taking 30%, and go try to go around them and only discount by 20%.  
    I don't think anyone is saying that Apple should take 0%.  Many would say that 10% is a much better deal for the consumer than 30%.
    muthuk_vanalingam
  • Reply 10 of 11
    lkrupplkrupp Posts: 9,543member
    p-dog said:
    Ah, I see the South Korean government is bending over and twerking at the behest of one of its biggest corporate pimps: Samsung.
    Yes, Samsung, one of whose ruling family was arrested for corruption and jailed. Some here call Apple greedy and arrogant. But Apple isn’t run by criminal oligarchs like Samsung is.
    watto_cobra
  • Reply 11 of 11
    Maintaining the App Store and the servers, as well as continuing to develop better tools for the app developers to use to make apps for the iPhone is magically free.  Neither is maintaining a safe and secure payment method for consumers.  Reviewing apps to weed out scams, malware, and apps that rip off other apps, isn’t free either.  This “Coalition would like us to think that all apple is doing is charging 30% just to be on the iPhone.  They want us to forget all that entails to keep the App Store safe and secure and continuing to develop better APIs
    watto_cobra
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