South Korea Could Ban Apple From Requiring Developers to Use In-App Purchase System

South Korea may soon ban Apple and Google from requiring app developers to use their in-app purchase systems, reports Reuters.

app store blue banner
South Korea's legislation and judiciary committee is expected to approve an "Anti-Google Law" that amends the existing Telecommunications Business Act. It will require Apple and Google to allow third-party payment methods in their app stores in South Korea, and it will let developers use independent payment systems.

If the amendment is approved by the committee, the National Assembly of South Korea will hold a final vote on Wednesday. Support for the bill has been picking up, and earlier this month, officials in South Korea met with the founder of the Coalition for App Fairness and the senior vice president of Match Group, both vocal anti-Apple critics.

In a statement to Reuters, Apple said that the legislation "will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections, make it difficult to manage their purchases."

If passed, Apple believes the bill will cause user trust in App Store purchases to fall, which will lead to "fewer opportunities for the over 482,000 registered developers in Korea who have earned more than KRW8.55 trillion to date with Apple."

Apple currently collects 15 to 30 percent commission on in-app purchases made through the ‌App Store‌, and developers are required to use the company's in-app purchase system. Apple's ‌App Store‌ rules and restrictions are at the heart of its legal battle with Epic Games and are the target of similar legislation in the United States and Europe.

An antitrust bill proposed in the United States earlier this month would force Apple and Google to allow third-party app stores and sideloading, while the European Commission last year introduced the Digital Markets Act that would regulate how app stores operate in Europe.

Top Rated Comments

Madmic23 Avatar
22 weeks ago
I'm just going to put my usual rule here:

* If the content is hosted on Apple servers, like more levels or characters for a game, I'm ok with the app having to use Apple's in-app payment system.
* If the content is hosted on an outside server, like a Kindle book or the Netflix or Spotify content libraries, the option should exist to use third-party payments systems.

Apple doesn't get a cut when I buy a product through the Amazon app, why should they get a cut on virtual items?
Score: 28 Votes (Like | Disagree)
kenny7 Avatar
22 weeks ago
South Korea would be the first country to require third-party payment methods. FINALLY!!!!!
Score: 21 Votes (Like | Disagree)
MuppetGate Avatar
22 weeks ago
"Undermine their privacy protections"

We're going with that one are we? Okay then …
Score: 17 Votes (Like | Disagree)
vagos Avatar
22 weeks ago

I believe a lot of malls & shopping centers charge tenants for a percentage profit, in addition to the rent. Thus if the App Store is an extension of the mall in a virtual sense, what Apple is doing is not out of bounds with in-app purchases. Someone correct me if I'm wrong here.
Don't compare it with malls. It's a computing platform and it should be free as windows and macos are. We don't need apple as the gatekeeper to download our software. We deserve lower prices for software. Apple makes enough money from selling the phones at a premium anyway.
Score: 15 Votes (Like | Disagree)
contacos Avatar
22 weeks ago
Such bull … ! Guess what Apple, I already made 5 online purchases with my credit card or PayPal today! and I have yet to be victim of fraud after 33 years on this planet. Apple isn’t the holy grail of payments and if their App review process was so great, there wouldn’t be anything to be worried about anyway right?
Score: 13 Votes (Like | Disagree)
Darmok N Jalad Avatar
22 weeks ago
Apple is going to have a much harder time selling privacy and security as the reasoning now. We probably just need a good FAQ to set us straight though.
Score: 10 Votes (Like | Disagree)

Related Stories

General App Store South Korea Feature Feature

South Korea Passes Bill Banning Apple From Requiring Developers to Use App Store In-App Purchase System

Tuesday August 31, 2021 3:12 am PDT by
South Korea today passed a bill that bans Apple and Google from requiring developers to use their own respective in-app purchasing systems, allowing developers to charge users using third-party payment methods, The Wall Street Journal reports. The bill was originally supposed to be voted on yesterday, however, more urgent matters presented to South Korea's National Assembly meant the bill...
Mac App Store General Feature

Apple and Google Given Mid-October Deadline in South Korea for Filing Plans to Allow Outside Payment Systems in Apps

Wednesday September 29, 2021 7:18 am PDT by
Apple and Google have been asked to provide compliance plans for a newly amended law in South Korea that bars both tech giants from forcing developers to using their in-app purchase payment system for their respective app distribution platforms, Reuters reports. In August, South Korea passed an amendment to an existing law that bans Apple and Google from mandating developers to use their own ...
app store blue banner epic 1

Epic Games CEO to Speak in South Korea Next Week Against the App Store Amid Ongoing Tensions With Apple

Thursday November 11, 2021 1:39 am PST by
Epic Games CEO Tim Sweeney will appear next week at a conference in South Korea to discuss the fairness of mobile app platforms and ecosystems amid his company's ongoing tension with Apple, according to a press release. Sweeney will be joined by other members and representatives of the "Coalition for App Fairness," a group of developers and companies lobbying against Apple's...
Mac App Store General Feature

South Korea Delays Bill That Would Ban Apple From Requiring Developers to Use In-App Purchase System

Monday August 30, 2021 7:07 am PDT by
South Korea has delayed voting on a bill that would ban Apple and Google from requiring developers to use their in-app purchasing systems, a move that would open the door to allowing third-party payment methods, representing a possible significant threat to Apple and Google's app marketplace business models. The bill, coming in the form of an amendment to the existing Telecommunications...
General App Store South Korea Feature Feature

Apple to Allow Alternative Payment Systems in App Store in South Korea

Monday January 10, 2022 8:37 pm PST by
Apple will let App Store developers offer alternative payment systems in South Korea after the country passed a law that bans app store operators from requiring developers to use their own in-app purchase systems, reports The Korea Herald. Apple still plans to charge a reduced fee on purchases made through alternative payment systems, according to plans the company submitted to the Korea...
google play alternative billing

Google Play Will Let Developers Use Alternative Billing Systems in South Korea, While Apple Has Yet to Make Changes

Thursday November 4, 2021 8:57 am PDT by
The South Korean government recently passed a law that bans Apple and Google from requiring developers to use their in-app purchase systems in the App Store and Google Play respectively, and Google has now announced changes to comply with the law. In a blog post, Google said it will be giving developers the option to add an alternative in-app billing system alongside the Play Store's billing ...
General App Store South Korea Feature Feature

Apple Accused of Not Doing Enough to Comply With South Korean App Store Law

Tuesday November 16, 2021 5:09 am PST by
Apple is not doing enough to comply with South Korean legislation that forbids app store operators from forcing developers to use their payment systems, according to lawmaker Jo Seoung-lae, Reuters reports. Via an amendment to the Telecommunication Business Act, South Korea is the first country endeavouring to stop developers from being forced to use a single payment system offered by app...
fortnite apple logo south korea feature 1

Epic Games Asks Apple to Restore Fortnite in South Korea Following Ban on In-App Purchase Requirement [Update]

Thursday September 9, 2021 5:00 pm PDT by
Epic Games today said that it has asked Apple to reinstate its Fortnite developer account because it intends to release Fortnite in South Korea. South Korea in late August passed a bill that bans Apple from requiring developers to use its in-app purchase system. The bill forces Apple (and Google) to let developers use third-party payment methods to make purchases. Epic Games now says that ...

Popular Stories

Upcoming Products 2022 Feature

Gurman: Apple Preparing 'Widest Array of New Hardware Products in Its History' for Fall

Sunday January 23, 2022 10:32 am PST by
Apple is working on a number of new products that are set to launch this fall, and Bloomberg's Mark Gurman says that it will be "the widest array" of new devices that Apple has introduced in its history. In his latest "Power On" newsletter, Gurman explains that Apple is working on four new flagship iPhones (iPhone 14, iPhone 14 Max, iPhone 14 Pro, and iPhone 14 Pro Max), an updated low-end Ma...
macbook pro 14 16 2021

Three Months After Launch, Apple Still Struggling to Meet Demand for Redesigned 14-Inch and 16-Inch MacBook Pro

Monday January 24, 2022 7:12 am PST by
Three months after their launch, the 14-inch and 16-inch MacBook Pros continue to experience high demand and seemingly short supply, with shipping dates for both models stretching into multiple weeks in several of Apple's key markets. In the United States, the baseline 14-inch MacBook Pro with the M1 Pro chip is estimated to ship in three to four weeks, promising an arrival by at least...
General Dropbox Feature

macOS 12.3 Will Include Cloud Storage Changes Affecting Dropbox and OneDrive

Tuesday January 25, 2022 3:31 pm PST by
Dropbox today announced that users who update to macOS 12.3 once that software version becomes available may temporarily encounter issues with opening online-only files in some third-party apps on their Mac. In a support document and an email to customers, Dropbox said it is actively working on full support for online-only files on macOS 12.3 and will begin rolling out an updated version of...
Questionable Design Decisions

Apple's Most Questionable Design Decisions in Recent Memory

Sunday January 23, 2022 2:59 am PST by
Apple has always emphasized the depth of thought that goes into the design of its products. In the foreword to Designed by Apple in California, a photo book released by the company in 2016, Jony Ive explains how Apple strives "to define objects that appear effortless" and "so simple, coherent and inevitable that there could be no rational alternative." But every once in a while even Apple...
Apple Watch Red Yellow Green Feature 1

Apple Launches Black Unity Braided Solo Loop With 'Unity Lights' Watch Face

Wednesday January 26, 2022 6:05 am PST by
Apple today announced the Black Unity Braided Solo Loop for the Apple Watch, as well as a new downloadable watch face, to celebrate Black History Month. Following the launch of the limited edition Black Unity Apple Watch Series 6 and Sport Band in 2021, Apple today launched the Black Unity Braided Solo Loop as part of its celebrations for Black History Month this year.Apple is launching a...
att gigabit internet

AT&T Bringing $180/Month 5-Gigabit Internet to 70 Cities

Monday January 24, 2022 9:20 am PST by
AT&T today announced the launch of upgraded AT&T Fiber plans, which support speeds of up to 5 Gigabits for some customers. There are two separate plans, one "2 GIG" plan and one "5 GIG" plan, available to new and existing AT&T Fiber subscribers. According to AT&T, the new plans are available to nearly 5.2 million customers across 70 metro areas including Los Angeles, Atlanta, Chicago, San...
intel vs m1 max chip purple

Benchmarks Confirm Intel's Latest Core i9 Chip Outperforms Apple's M1 Max With Several Caveats

Wednesday January 26, 2022 8:56 am PST by
Benchmark results have started to surface for MSI's new GE76 Raider, one of the first laptops to be powered by Intel's new 12th-generation Core i9 processor. Intel previously said that its new high-end Core i9 processor is faster than Apple's M1 Max chip in the 16-inch MacBook Pro and, as noted by Macworld, early Geekbench 5 results do appear to confirm this claim, but there are several...
ios 15

Apple Releases iOS 15.3 and iPadOS 15.3 With Fix for Safari Bug That Leaks Browsing Activity

Wednesday January 26, 2022 10:00 am PST by
Apple today released iOS 15.3 and iPadOS 15.3, the third major updates to the iOS and iPadOS 15 operating systems that were released in September 2021. iOS and iPadOS 15.3 come almost two weeks after the release of iOS and iPadOS 15.2.1, minor bug fix updates. The iOS 15.3 and iPadOS 15.3 updates can be downloaded for free and the software is available on all eligible devices over-the-air in ...