South Korea has passed new bills that force the application store to let developers use their choice of payment systems. Basically, this means that the Devs application can dodge Apple and Google cuts up to 30% by transacting directly with consumers or using services that require smaller pieces.
The Telecommunications Business Act Bill which was passed by the South Korean National Assembly would be law when signed by President Moon Jae-in, Bloomberg reported, which could be early next month.
The bill has clear implications for the Apple and Google business, as well as the ongoing Epic Suits studio brought from the two companies. Epic will now be able to obtain payments from users directly by using the payment system itself and avoiding the administration of Apple or Google every cutting income.
Apple has used the App Store as a gatekeeper for software, requires developers to run the approval process to release the application intended to run the iPhone (on iPados). Google allows the ‘side-loading’ application for phones and tablets that run the Android operating system, but it is good and Apple has forced the application to pay through the first party stores: if you make money in your application, the technology giant that has an OS And related app stores will be cut.
While these rigid controls have not been popular with application developers, it is missing mostly unmatched until epic moves in simultaneous legal battles with Apple and Google. Epic wants to place its own software store on iOS and Android devices, maybe but it doesn’t officially pay less or there is no cutting income for both technology giants.
But the South Korean bill does not pass specifically to advocate for the availability of software on cellular platforms – it only freees developers to use different payment services if they choose. The Korean Parliamentarians reportedly graduated from this legislation to advance from Google to close the gap that released the country from the need to use the payment system (and applying a 30% income cut) to a non-game application, per Bloomberg.
If Apple, Google or other companies fail to comply, they can be fined up to 3% of revenues made in South Korea, according to the Wall Street Journal.
Analysis: The first domino to open the Store App payment around the world?
Apple and Google have claimed that limiting software through their application shop has made a safe user, with Apple claiming its efforts to prevent $ 1.5 billion in fraud. But maintaining their relationship in iOS, iPados and Android income is very profitable: Apple App Store and the Google Play Store carrying $ 64.9 billion in income in the first half of 2021, per June report by the Sensor Tower company analyst.
The big question is: What does this mean for the application market outside of South Korea? While we know that South Korean lawmakers will make decisions about Apple and Google application stores, other countries have not introduced similar laws – at least at the national level.
The US country from Parliamentarian Arizona proposed a bill in March similar to South Korea which would free developers from being forced to use the Apple and Google payment system. While the bill died on the committee before the end of the month, it was reported because of the heavy lobby by the two giants of the technology just before the sound according to the threshold, it showed that some legislators were elsewhere interested in this problem.
The flower can be obliged now that South Korea’s efforts have become law – especially indicating that laws can succeed despite the pushback of Apple and Google. We must see if the law succeeds where epic law trials are not.
