Seoul, Aug 25 (IANS) The South Korean parliamentary committee on Wednesday proposed amending a law to ban software developers from charging commissions on Google and Apple app purchases, the first regulation of a large economy.
Apple Inc. (AAPL.O) And Alphabet Inc. (GOOGL.O) Google has faced global criticism because software developers are required to use proprietary payment methods using their App Store, which charges up to 30% commission.
In a statement on Tuesday, Apple said the bill “would expose users who purchase digital products from other sources to risk fraud and undermine their privacy protection”, hurt user confidence in App Store purchases and create less opportunities for South Korean developers.
Wilson White, Google’s senior director of public policy, said the “rapid process did not allow for an adequate analysis of the negative impact of this law on Korean consumers and application developers.”
Experts said that by working with developers and other companies, App Store operators can ensure security on payment methods other than their own.
“Google and Apple alone cannot create a secure payment system,” said Lee Hwang, a professor at the University of Korea School of Law who specializes in competition law.
Others noted that South Korea has very strong legal protections for online transactions in the world, and that app store operators should provide advanced services to maximize profits.
“Dominant App Store operators with large sites now need to look at profits from value-added services, not cut from the applications sold in its store,” said Yu Pyong-jun, professor at the Seoul National University School of Business. Electronic commerce.
Based on South Korean parliamentary records, App Store operators with dominant market positions are prohibiting the editing of payment systems on content providers and delaying the review or removal of mobile content from the app market “inappropriately”.
It allows the South Korean government to use an app market operator to “prevent harm to users and protect users’ rights and interests” by inspecting app market operators and mediating disputes related to payments, cancellations or withdrawals in the App Market.
The amendment will come to a final vote in Parliament after a vote by the Law and Justice Committee to amend the Telecommunications Business Act, known as the “Anti-Google Act”.
That Voting was scheduled for WednesdayBut a parliamentary official told Reuters the meeting was temporarily delayed until August 30. read more
In the United States this month, a group of senators from both sides introduced a bill to restrict the app stores of companies that claim to have more market control, including Apple and Google. read more
Report by Heekyong Yang and Joyce Lee; Editing by Jerry Doyle and Kim Gogil
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