Apple's Proposal to Allow Third-Party Payment Methods in App Store 'Lacks Detail,' Says South Korean Regulatory Commission

Apple's plans to allow developers to use third-party alternative payments methods within their apps in South Korea "lacks concrete detail," according to South Korea's Communications Commission (KCC).

General App Store South Korea Feature Feature
In August, South Korea passed a law that bans app store operators from requiring developers to use their in-app purchase systems. Last month, Apple submitted its compliance plans to the KCC that would allow apps in Apple's South Korean App Store to use third-party payment methods within their apps. Apple's plans include that the company will still take a commission for all purchases made, even those made with third-party alternative payment methods, but specific details were not shared.

Now, ahead of the law being finalized and enacted, South Korea's KCC says Apple's submitted plan "lacks concrete detail," reports Reuters. KCC is unhappy that both Apple and Google still plan to charge a commission on purchases made with third-party payment methods, arguing that such a commission will entice developers to stay with the app stores' respective, default payment process.

"As a result of any policy, if app developers find it realistically difficult to use an alternative payment system and resort to using the dominant app store operator's payment system, it would not fit the law's purpose," the official said, adding that this stance would likely be reflected in the final ordinance."

A similar series of events have taken place in The Netherlands, one of several countries looking into Apple's ‌App Store‌. Dating apps in The Netherlands will soon be allowed to use third-party alternative payment methods. Apple's plans to comply with the law in The Netherlands have been criticized for being inadequate in addressing concerns, leading to a fine of 5 million euros per week up to a maximum of 50 million euros until Apple complies.

"We look forward to working with the KCC and our developer community on a solution that benefits our Korean users," Apple had previously said in a statement about the law in South Korea. "Our work will always be guided by keeping the ‌App Store‌ a safe and trusted place for our users to download the apps they love," the company added.

Top Rated Comments

Michael Scrip Avatar
11 months ago
Google has already stated how they will handle commissions in South Korea:

15% if you use the Google Play Store payment system
11% if you use another payment system

I'm guessing Apple will do something similar.

But you may be saying "that's only 4% less... once the developer pays for outside payment processing... it'll be roughly the same as if Google handled it all!"

That's true! So maybe instead of arguing about

"alternative payment systems"

developers should have been begging for

"lower commission fees"

Because guess what... payment fees are pretty standard nowadays. 3% to 4%

But it's the platform commission fees were always the bulk of what developers paid.

No one ever talked about it because it was all rolled into one flat fee.

But now that we can separate platform fees and payment fees... I guess people will start arguing about commission fees next!

:p
Score: 9 Votes (Like | Disagree)
neuropsychguy Avatar
11 months ago
“KCC is unhappy that both Apple and Google still plan to charge a commission on purchases made with third-party payment methods.”

There ain't no such thing as a free lunch. If the commission fees are banned, the companies will make it up elsewhere.
Score: 9 Votes (Like | Disagree)
DelayedGratificationGene Avatar
11 months ago
It’s absurd to think Apple will never be allowed to charge a commission with or without payment options. If that happened then every platform from Walmart to PlayStation would never make money and be forced out of business. Stop even questioning the commission aspect because it’s NOT going away.
Score: 8 Votes (Like | Disagree)
AndiG Avatar
11 months ago

Google has already stated how they will handle commissions in South Korea:

15% if you use the Google Play Store payment system
11% if you use another payment system

I'm guessing Apple will do something similar.

But you may be saying "that's only 4% less... once the developer pays for outside payment processing... it'll be roughly the same as if Google handled it all!"

That's true! So maybe instead of arguing about

"alternative payment systems"

developers should have been begging for

"lower commission fees"

Because guess what... payment fees are pretty standard nowadays. 3% to 4%

But it's the platform commission fees were always the bulk of what developers paid.

No one ever talked about it because it was all rolled into one flat fee.

But now that we can separate platform fees and payment fees... I guess people will start arguing about commission fees next!

:p
Guess that is the point. Apple has never declared how it is going to control bank transfers and collect fees. What is the difference between using a locally implemented in app payment and a payment on a website? What if the app invokes a website for payment? What if the app displays the website in an integrated browser within the app?

Guess Apple is simply not allowed to control transfers of money? Why doesn't Microsoft charge me, when I use internet banking using Microsofts edge browser on Windows?

Apples proposal is simply rediculous. Will Apple charge me for any bank transfer that is done using macOS? What if I buy a movie on AmazonPrime using macOS? What if I use iPadOS? Does it make a difference if I use an App or the browser?

Lots of questions.

They got very greedy ...
Score: 8 Votes (Like | Disagree)
DelayedGratificationGene Avatar
11 months ago
“Ok Epic here is your commission invoice for your 3rd party payment transactions”….”what?”…”wait!”…”so now it’s costing me to have a 3rd party payment system PLUS I still have to pay you guys commission for your awesome platform?!”…”man this is going all the wrong way!”……hmmm I should have thought this out better
Score: 6 Votes (Like | Disagree)
macar00n Avatar
11 months ago
If they're going to act like this, then they should have the iPhone and its app store taken away. Imagine telling a physical store that you want to put your products on its shelves for free, want your own payment method added to their checkout for free, and dictate the exact terms of how they are sold. South Korean lawmakers are completely out of touch, and would be straightened out by their citizens in about ten minutes if Apple threatened to pull out of the country.
Score: 6 Votes (Like | Disagree)

Related Stories

iOS App Store General Feature Dock 2

Apple Would Rather Pay Up to €50 Million in Fines Than Address 'Gatekeeper' App Store Behavior, Says EU Chief

Wednesday February 23, 2022 6:14 am PST by
Apple would rather pay a maximum of €50 million in fines than address concerns brought forward by the Dutch competition authority regarding developer access to third-party payment methods on the App Store, the EU's head of digital policy, Margrethe Vestager, has said. During a speech about the digital economy and privacy (via TechCrunch), Vestager said that Apple "essentially prefers paying...
iOS App Store General Feature Clorange

Apple Fined €5 Million for Ninth Time in the Netherlands Over Third-Party In-App Payment Systems

Tuesday March 22, 2022 5:00 am PDT by
Apple has been hit with its ninth €5 million ($5.5 million) fine in the Netherlands for ostensibly continuing to insufficiently meet new requirements regarding alternative payment systems for dating apps, Reuters reports. The Dutch Authority for Consumers and Markets (ACM) said that Apple had sent it "new proposals" on Monday in an attempt to resolve the company's dispute over allowing...
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 ...
iOS App Store General Feature JoeBlue

Illinois Floats Bill That Would Let Developers Skirt Apple's In-App Purchase Rules

Wednesday January 19, 2022 4:09 pm PST by
Illinois is the latest state to attempt to pass legislation that would prevent developers from being required to use Apple's in-app purchase options by allowing for alternate payment solutions within apps. As outlined by Illinois news site WGEM, under the Freedom to Describe Directly Act, distribution platforms like the App Store and Google Play would not be able to force Illinois developers ...
epic iap feature 3

South Korean Bill That Could Allow Third-Party Payment Methods on the App Store Gains Support Ahead of Vote

Tuesday August 3, 2021 5:15 am PDT by
A bill that could require Apple and Google to allow third-party payment methods on their respective app stores in South Korea is gaining support ahead of a vote on the issue. The bill proposes an amendment to the existing Telecommunications Business Act, which would bar Apple, Google, and any other company that operates its own app distribution platform, from forcing developers to use a...
iOS App Store General Feature Dock

Dutch Regulator Says Apple's Plan for Third-Party In-App Payments is Insufficient, Fines Apple 5 Million Euros

Monday January 24, 2022 6:33 am PST by
The Dutch Authority for Consumers and Markets (ACM) has ruled that Apple's plan to allow App Store dating apps to use third-party payment methods for in-app purchases does not sufficiently meet the requirements of a previous ruling. As a result, the ACM has hit Apple with an initial 5 million euro fine as a consequence, and fines will continue to be assessed at 5 million euros per week up to a...
iOS App Store General Feature JoeBlue

Developers Now Able to Submit Claims for $250 to $30,000 Payments From Apple in Lawsuit Settlement

Friday January 14, 2022 12:24 pm PST by
Apple in August announced plans to pay $100 million to settle a class-action lawsuit levied by U.S. developers, and as of today, the website that will allow developers to submit a claim for a payout has gone live. The $100 million that Apple provided is being distributed as part of a "Small Developer Assistance Fund," and developers can claim between $250 and $30,000 based on their historic...

Popular Stories

Cyber Monday Deals Feature 2022

Best Cyber Monday Apple Deals Still Available for AirPods, Apple TV, iPad, and More

Monday November 28, 2022 5:24 am PST by
The Black Friday and Cyber Monday holiday shopping rush is drawing to a close, but there are still some good deals to be had out there. For Apple products, many of the deals you've seen since last week are still available, though some have expired. So for anyone who missed out on Black Friday deals, there's still an opportunity to get some of the year's best prices on many Apple devices. Note: ...
iPhone 14 Pro Rear Camera

iPhone 15 to Use 'State-of-the-Art' Image Sensor From Sony for Better Low-Light Performance

Monday November 28, 2022 11:00 am PST by
Apple's upcoming iPhone 15 models will be equipped with Sony's newest "state of the art" image sensors, according to a report from Nikkei. Compared to standard sensors, Sony's image sensor doubles the saturation signal in each pixel, allowing it to capture more light to cut down on underexposure and overexposure. Nikkei says that it is able to better photograph a person's face even with...
Apple Watch Ultra Oceanic Plus App

Apple Announces Oceanic+ App Now Available for Apple Watch Ultra

Monday November 28, 2022 6:11 am PST by
Apple today announced that the Oceanic+ app is available for the Apple Watch Ultra starting today. Designed by Huish Outdoors in collaboration with Apple, the app serves as a dive computer for recreational scuba diving at depths up to 40 meters/130 feet. Apple already offers a basic Depth app on the Apple Watch Ultra for viewing your current depth, maximum depth reached, water temperature,...
app store awards 2021

Apple Announces 2022 App Store Award Winners, Highlighting Best Apps of the Year

Tuesday November 29, 2022 3:10 am PST by
Apple today announced its 2022 App Store Award winners, highlighting the 16 best apps and games selected by Apple's global App Store editorial team. The top apps were chosen by Apple for their quality, innovative technology, creative design, positive cultural impact, and ability to deliver "exceptional experiences." Apple CEO Tim Cook said: This year's App Store Award winners reimagined...
rapid security response

Apple Releases Another Rapid Security Response Update for iOS 16.2 Beta Users

Monday November 28, 2022 10:16 am PST by
Apple today released a Rapid Security Response update that is available for those running the iOS 16.2 beta, marking the launch of the second RSR update since the feature was released in iOS 16. The Rapid Security Response Update is designed to provide iOS 16.2 beta users with bug fixes without the need to install a full update. The initial RSR release for iOS 16.2 beta users was a test with ...
twitter elon musk

Elon Musk Claims Apple Has 'Mostly Stopped' Offering Ads on Twitter and Is Making Moderation Demands

Monday November 28, 2022 10:42 am PST by
Apple has cut back on its Twitter advertising, according to Twitter CEO Elon Musk. In a tweet, Musk said that Apple has "mostly stopped" its Twitter ads, asking if Apple hates "free speech." Musk went on to publish a poll asking if Apple should "publish all censorship actions" taken that impact customers and he began retweeting content from companies that Apple has had moderation discussions ...
iphone 11 tesla cybertruck close up

Elon Musk Pledges to Build iPhone Rival If Apple Ousts Twitter

Tuesday November 29, 2022 2:48 am PST by
Elon Musk has pledged to offer an "alternative phone" if Apple and Google remove Twitter from their app stores, adding to long-standing rumors about an iPhone rival from Tesla. Modified iPhone 11 Pro in the style of the Tesla Cybertruck, by Caviar. Musk's remark came after being asked about the potential scenario of Twitter being removed from app stores, which could conceivably happen if the...
General Black Friday Deals 2022 Green

All the Apple Black Friday Deals You Can Still Get

Friday November 25, 2022 4:40 am PST by
Although Black Friday is now technically over, many Apple products are still seeing major discounts through the weekend as we head into Cyber Monday. In this article, you'll find every Apple device with a notable Black Friday sale that's still available. We'll be updating as prices change and new deals arrive, so be sure to keep an eye out if you don't see the sale you're looking for yet. Note:...