December 5, 2022

S. Korea was set up to control the dominance of Google and the Apple Commission

SEOUL, Aug. 24 (Reuters) – South Korea is likely to ban Google and Apple from allowing software developers to use their payment methods. Economy.

The Parliamentary Law and Judiciary Committee is expected to approve an amendment to the Telecommunications Business Act on Tuesday, known as the “Anti-Google Act”, which targets app store operators with dominant market positions.

If the bill is approved by the committee, it will be put to a final vote on Wednesday. Lawmakers in South Korea have been raising the issue of commission structure since the middle of last year.

Alphabet Inc. (GOOGL.O) Google and Apple Inc. (AAPL.O) Not immediately available for comment.

Both companies have faced global criticism because software developers are required to use proprietary-application payment methods using their App Stores, which charge up to 30% commission on in-app purchases.

“For gaming processors, Google is forcing developers to use its own payment system … and wants to extend its policy to other applications such as music or webtoon,” said Kwon Se-hwa, general manager of Korean Internet companies. .

“If the new bill becomes law, developers will have the opportunity to use other independent payment methods,” Kwon said.

Last year the EU proposed a digital market law targeting App Store commissions. These rules are designed to affect large companies, but some European lawmakers are in favor of targeting American technology companies and tightening them up. Reuters reported in June. read more

In the United States earlier this month, three of the bilateral senators Introduced a bill They will control the app stores of companies that claim to have more market control, including Apple and Google. read more

In South Korea, Android phone maker Samsung Electronics Co. Ltd. (005930.KS)The Google Play Store grossed nearly $ 6 trillion ($ 5.29 billion) in 2019, according to a government report released last year.

Earlier this year, Google said it would decrease The service charges developers 30% to 15% on its App Store for the first $ 1 million a year in revenue. Apple has made similar moves. read more

Purchasing commissions in use for Apple are a key part of its $ 53.8 billion service business, and a huge expense for some app developers.

In May, it was revealed that Game Maker was a hopeless lawsuit filed by the maker of the popular game “Fortnight” against Apple. Paid $ 100 million in commission For Apple for two years. read more

Hikion Yang’s report in Seoul, Stephen Nellis’ additional report in San Francisco

Our standards: Thomson Reuters Foundation Policies.