Apple must now allow alternative payment systems in South Korea to comply with a new law banning technology companies such as Google and Apple from imposing in-app payment systems.
In September, South Korea passed a law banning operators of app stores such as Apple and Google from requiring developers to use first-person payment systems for in-app purchases, according to Apple Insider. In addition, the amendment draws a red line around the rules that discourage developers from marketing their products on other operating systems.
For the first time, Apple is now allowing alternative payment systems in South Korea to comply with the new law. The company will provide the Korean Communications Commission (KCC) with an alternative payment system with reduced service costs as part of compliance programs. The mentioned historical plans to implement this policy and the amount of reduction of service costs have not been disclosed.
The Cupertinoites said in a statement:
We look forward to working with KCC and our developer community on a solution that benefits Korean users. Apple has a strong respect for Korean law and has a history of working closely with talented Korean app developers.
In recent years, Apple and Google have come under fire for their in-app payment systems. The criticism is that both companies charge up to 30% of their in-app purchases. In November, a mass lawsuit alleges that Apple used its popular iOS platform to build a closed ecosystem that puts customers in the software market under pressure from App Store commissions, and that costs continue to generate “cross-competitive” profits.
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