In response to a South Korean law passed last year, Apple will now allow third-party developers to offer their own alternative payment services for purchases made through the App Store. The move comes after Google announced its intention to do the same at the end of 2021.
Finally, in accordance with South Korea’s telecommunications law, the company submitted plans that would allow third-party developers to support other payment systems. While Apple will still take a service charge, it will be lower than the 30% currently charged because the company will no longer need to process payments.
“We look forward to working with the KCC and our developer community on a solution that benefits our Korean users. Apple has great respect for Korean laws and a solid history of working with the country’s talented app developers. Our work will always be guided by making the App Store a safe and reliable place for our users to download the apps they love, ”Apple said in a statement as reported by Korean News Agency Yonhap. This is a change from the company’s initial reaction, which was to point out all the downsides this move would have on their business.
“The Telecommunications Business Act will expose users who buy digital goods from other sources to the risk of fraud, undermine their privacy, make it difficult to manage their purchases and make it difficult to manage their purchases and features such as Ask to Buy and Parental Controls. will become less effective. We believe that user confidence in App Store purchases will decrease due to this legislation, resulting in fewer opportunities for the more than 482,000 registered developers in Korea who have earned over 8.550 billion (won). to date with Apple, ”an Apple spokesperson told Digital. Trends in August 2021.
While preferable to the Old West that existed before App Stores became popular, Apple and Google have come under fire for forcing developers to route all payments through their integrated payment systems in exchange for 30% (variable) fees. Both companies argued that the fees justified much more than just processing payments – Google’s fees fund Android development, for example, but that was not enough to prevent the courts from demanding a change in the system. status quo. Similar pressure from the Japanese government led the company to open access to external links in “reading apps”.