Apple, Google must file plans to comply with South Korean app store law by mid-October
The South Korean government on Wednesday asked Apple and Google to ready proposals pertaining to their compliance with a new law that bans app store operators from requiring use of first-party payment systems.
A regulatory official said both companies have until mid-October to turn in compliance plans, reports Reuters.
The request comes as the Korea Communications Commission prepares to draft an enforcement ordnance to go along with a recently passed amendment to the country's Telecommunications Business Act.
The bill, which was dubbed the "Anti-Google law" by local media, bans Apple and Google from forcing 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.
According to the regulatory official cited in today's report, the Korea Communications Commission will complete the enforcement ordnance within six months.
Korea's new legislation represents the first successful effort by a major government to extricate app store operators from developer revenue earned on the online marketplaces. While the Korean action is not expected to significantly impact either company, identical laws are under consideration in the U.S. and threaten to imperil the tech giants' bottom lines.
Apple and Google take an up to 30% cut of sales and in-app purchases.
Apple has argued that the legislation puts the safety and security of App Store customers in jeopardy.
"The proposed Telecommunications Business Act will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections, make it difficult to manage their purchases, and features like Ask to Buy' and Parental Controls will become less effective," Apple said after the bill sailed through South Korea's parliament in September.
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A regulatory official said both companies have until mid-October to turn in compliance plans, reports Reuters.
The request comes as the Korea Communications Commission prepares to draft an enforcement ordnance to go along with a recently passed amendment to the country's Telecommunications Business Act.
The bill, which was dubbed the "Anti-Google law" by local media, bans Apple and Google from forcing 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.
According to the regulatory official cited in today's report, the Korea Communications Commission will complete the enforcement ordnance within six months.
Korea's new legislation represents the first successful effort by a major government to extricate app store operators from developer revenue earned on the online marketplaces. While the Korean action is not expected to significantly impact either company, identical laws are under consideration in the U.S. and threaten to imperil the tech giants' bottom lines.
Apple and Google take an up to 30% cut of sales and in-app purchases.
Apple has argued that the legislation puts the safety and security of App Store customers in jeopardy.
"The proposed Telecommunications Business Act will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections, make it difficult to manage their purchases, and features like Ask to Buy' and Parental Controls will become less effective," Apple said after the bill sailed through South Korea's parliament in September.
Read on AppleInsider
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