What you need to know
- A new law in South Korea could blow Apple's App Store wide open.
- A parliamentary committee has approved an amendment to the Telecommunications Business Act.
- It would stop Apple and Google from forcing developers to use in-app payment systems for purchases on iOS.
A parliamentary committee in South Korea has passed an amendment to its Telecommunications Business Act that will now move to a final vote in parliament.
Yonhap news agency reports:
As previously reported, S. Korea is seeking to legislate against Apple and Google, preventing them from forcing developers to use in-app payment systems for purchases on their platforms. The measure would deprive Apple of its 15-30% commission taken on transactions for digital goods on devices like the iPhone 12. A full parliamentary vote will now take place in a plenary session. If passed, Korea would become the first country in the world to successfully legislate against Apple regarding antitrust issues.
In a statement, Apple has warned that the move "will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections and make it difficult to manage their purchases." Tim Cook told the judge in the Epic Games vs Apple lawsuit that even if developers did use third-party payment methods, Apple would still have to find a way to collect commission from them.
The Coalition for App Fairness, which has lobbied for this bill, said yesterday it was "pleased to see the South Korean Judiciary Committee approve legislation that would bolster innovation and consumer choice." Stating "South Korea is now on the verge of becoming the first nation to approve legislation holding app store gatekeepers accountable for their anti-competitive practices, and bringing fairness to the digital marketplace."
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9