South Korea has again imposed new regulations on app stores, this time with a scheme that will see operators fined up to 2% of revenue if they tax their proprietary, integrated payment systems. to developers.
“Considering that some compulsory acts related to payment methods are serious illegal acts of operators of the application market, an enforcement order has been prepared which imposes a fine of 2% of sales and 1% of sales in the event of filtering or deletion delayed, “the Korea Communications Commission (KCC) said yesterday in a (Korean language) canned declaration.
The new regulations follow the introduction in September 2021 of the country’s Telecommunications Business Act, which prevents tech giants from restricting payment options on their platforms, whether paying for apps or in-app purchases. The law also prevents Google, Apple and others from taking a share of in-app purchases facilitated by third-party services.
The law was designed to tackle anti-competitive behavior by those who regularly abuse their market dominance in app stores. It all started when Epic Games filed a lawsuit against Google and Apple for the right to use alternative payment mechanisms in iOS and Android apps. The game developer found the standard 30% rate to be excessive and the inability to use its own payment offer was anti-competitive. Google and Apple have both pulled back a bit since then, with the advertising giant complying with South Korea’s new law.
Apple, on the other hand, has said it is already complying – although government officials have a different interpretation of “compliance.” The issue is still unresolved, which may be why South Korea has introduced these sanctions. ®