What you need to know
- South Korea has passed a law that could drastically change Apple's App Store.
- The Coalition for App Fairness says the move is a "momentous step forward" in the antitrust battle.
The Coalition for App Fairness, formed by companies like Epic Games to battle Apple's App Store business model, says that a new law passed in South Korea is a "momentous step forward" in the global antitrust battle.
In a statement the group said:
Today the South Korean government took a momentous step forward in the fight for app fairness by passing the world's first law aimed specifically at bringing competition and fairness in the digital marketplace.
South Korea's new law prohibits app store platforms from requiring developers to use the app store's payment processing services for in-app purchases. Competition among payment processors will likely bring down the "app tax," which ranges between 15-30% for all digital services. Lower rates would help developers invest in their businesses and workforce, and benefit consumers with greater innovation and more choice.
CAF Executive Director Meghan DiMuzio said the move was a "significant development in the global fight to bring fairness to the digital economy" and that South Korea had made history, setting an example to the rest of the word. DiMuzio added "This law will hold app store gatekeepers accountable for their harmful and anti-competitive practices. The Coalition for App Fairness hopes U.S. and European lawmakers follow South Korea's lead and continue their important work to level the playing field for all app developers and users."
The group has been lobbying in South Korea in favor of the law, which Apple says will reduce trust in its App Store and lead to less opportunities for developers.