New Asian law puts app giants on notice as US action looms

Sep 02, 2021 at 05:20 am by admin

A South Korean law to restrict the dominance of tech companies including Apple has led to them loosening App Store restrictions on smaller developers.

The bill approved on Tuesday bans operators including Apple and Google from forcing users into their payment systems, with 180 votes to eight in favour of the measure.

Reuters has reported that the bill is the first such curb by a major economy on the likes of Apple and Alphabet’s Google, criticised for requiring the use of proprietary payment systems that charge commissions of up to 30 per cent.

Google says it will now “reflect on how to comply with this law while maintaining a model that supports a high-quality operating system and app store”. It claimed Google Play provided “far more than payment processing”, the fee helping keep Android free.

Apple said it thought user trust in App Store purchases would decrease as a result of the law. Both Apple and Google face similar legislation in the US.

Reuters said Apple has since agreed to loosen App Store restrictions for small developers, allowing developers to promote payment options outside Apple's payment system.

Sections: Digital business


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