South Korea Signs Act Against Apple And Google Policy

JAKARTA - South Korea has finally become the first country to reject Apple's and Google's policies. By approving a law on Tuesday that prohibits app stores, it forces developers to use payment systems within their apps.

The bill, approved by 180 votes, ended up in the National Assembly, making South Korea the first major economy to pass legislation on the issue.

In the United States, three senators this month introduced legislation to loosen tech companies' grip on their stores. Meanwhile in Europe, lawmakers are debating legislation that could force Apple to bring alternatives to the App Store.

Quoting ABCNews, Wednesday, September 1, South Korea's move comes as Apple and Google face global criticism for charging commissions of up to 30 percent of app sales. They also require developers to use the two companies' payment systems. They say the commission helps pay for the maintenance costs of the app market.

The Korean law, dubbed the Anti-Google Law, would prohibit app market operators from using their monopoly to demand such a payment system, meaning they would have to allow alternative ways to pay. It also aims to promote fairer competition.

In addition, the Act would also prevent retaliation against developers by prohibiting companies from imposing unreasonable delays in approving applications. In addition, the Act allows South Korean authorities to investigate the operation of the app market in order to uncover disputes and prevent actions that undermine fair competition.

"This law will definitely set a precedent for other countries, as well as app developers and content creators around the world," said the Korea Mobile Internet Business Association, Kang Ki-hwan.

Google itself is considering how to comply with the Act. "Google Play provides more than just payment processing, and our service fees help keep Android free, giving developers a global platform and tools to access billions of consumers around the world," Google said.

"Just as it costs developers to build apps, we also need money to build and maintain operating systems and app stores. We will reflect on how to comply with these laws while maintaining a model that supports high-quality operation. System and app stores, and we will share more in the coming weeks."

Apple last week announced that it had agreed to let iPhone app developers email users about cheaper ways to pay for digital and media subscriptions.