South Korea said it remains unhappy with Apple’s App Store plans to comply with a new antitrust law requiring developers to be able to choose third-party payment platforms.
The regulator also expressed concern over Google’s plans, which include a cut of just 4% of the company’s App Store commission if a developer uses a different payment processor…
We have already explained the context.
Apple’s monopoly on selling iOS apps has been the biggest antitrust concern surrounding the company. Apple tried to avoid regulatory pressure by cutting its commission from 30% to 15% for the vast majority of developers, but still lost a major US case banning developers from directing users to third-party payment platforms.
In South Korea, a law was passed that had the same effect of forcing Google and Apple to allow app developers to use third-party payment platforms.
The law went into effect in September last year, but Apple struggled with compliance at first.
Apple’s App Store plans lack details
Reuters reports that the regulator wants more details from Apple about what the company will do to comply with the law.
Although the order has not been finalized, the Korea Communications Commission (KCC) believes that a compliance plan submitted by Apple “still lacks concrete details”, a KCC official told Reuters.
The KCC was in touch with Apple representatives for a more detailed compliance plan that goes beyond the general intent to allow alternative payment systems, the official said.
He also echoes concerns about Google’s response.
The official said the KCC is aware of concerns over Google’s planned policy of only reducing its developer service fees by 4 percentage points when users choose an alternative billing system, and the regulator is awaiting further information. from Google.
Korea also said anything that made it difficult for a developer to switch to an external payment platform would not be acceptable. Some concerns have been raised that Apple and Google would technically comply, but make the process so cumbersome that developers would be deterred from switching.
Apple is also facing growing pressure in the United States to create a more open platform. The Biden administration and 35 US states backed Epic Games’ appeal against Apple, and a co-sponsor of two antitrust bills dismissed Apple’s objections. Apple continues to lobby against the bills, most recently sending out a letter claiming that a more open system would harm user privacy.
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