It looks like Apple and Google’s app store dominance is over, at least as far as South Korea is concerned. The country’s government has recently voted and has essentially backed plans to make changes to the Telecommunications Business Act that would force Apple and Google to allow the use of third-party payment platforms.Just yesterday though, the government had delayed the vote due to other topics that were more pressing. While they did not state when they would begin voting again, it seems that it did not take long. Now all that’s left is for the bill to be signed into law by the country’s president and they’ll be all set.
So what does this mean for Apple and Google? Basically both companies have used their own payments system for app purchases and other microtransactions. This also meant that developers were forced to give Apple a 30% cut from their proceeds, which some felt was unreasonable.
With this change, other payment providers will be allowed and who might take a smaller cut than Apple or Google, thus allowing developers to keep more of their revenue. Apple and Google will need to comply with this new law otherwise they face the risk of a fine of 3% of all their revenues in South Korea, including hardware sales.
According to Korea Communications Commission Chairman Han Sang-hyuk, “Adjustments can be made in executing the policy. We are fully aware of the concerns of Apple and Google, so we will implement them in consideration of both industry stakeholders and users.”
Filed in . Read more about Android, Apps, Google, iOS and Legal. Source: appleinsider