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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.

Mac-App-Store-General-Feature.jpg

In August, South Korea passed an amendment to an existing law that bans Apple and Google from mandating developers to use their own proprietary in-app purchasing system. Apple's in-app purchasing system gives the company a 15 to 30% commission for all purchases made and has been a hot topic for Apple and the discussion around the App Store for some time. Under the new law in South Korea, which is yet to go into effect, Apple and Google will be required to allow developers to use third-party payment methods within their app.

Apple has in recent weeks made some concessions to its App Store policy, most notably pivoting to allow developers to add links in their apps to external websites where purchases can be made. Those concessions come short of the mandate created by South Korea, which permits developers to add third-party payment methods directly within their app.

Apple has continued to call its in-app purchasing system the most trusted and safest way for customers to make purchases. Still, in light of recent decisions in its lawsuit against Epic Games, the Cupertino tech giant is being forced to rethink its model.

Apple operates the App Store under a single set of policies worldwide, and while the law passed in South Korea pertains to South Korean users, it will undoubtedly play a domino effect across the globe. With the mid-October deadline now set in South Korea for Apple and Google, we'll likely see how this decision could have repercussions around the world for Apple users soon.

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

dave420

macrumors 65816
Jun 15, 2010
1,416
236
I use in app purchases a lot. And for 90% of apps I would much rather pay Apple than trust my credit card information to a random developer.

I could see myself trusting developers for more major services. Like my local transit app, CharmPass, allows payments now using a credit card rather than using Apple’s in app purchase. Not sure why that’s allowed with the current guidelines as I am not overly familiar with them.
 

macar00n

macrumors regular
Aug 6, 2021
206
585
Here's a plan to allow for outside payment: remove your app from whichever app store, launch it on your own platform, and accept payments through that. "But then I'd have to build my own platform and it wouldn't have hundreds of millions of users like Apple and Google do." Yeah, that's the point - you have to give in order to get, I don't understand developers wanting all the benefits of these world class ecosystems but without paying into them. I'd love to drive a Lambo at the price of a Civic but I don't live in South Korea so I'd never win that court case.
 

Madmic23

macrumors 6502a
Apr 21, 2004
805
869
I use in app purchases a lot. And for 90% of apps I would much rather pay Apple than trust my credit card information to a random developer.

I could see myself trusting developers for more major services. Like my local transit app, CharmPass, allows payments now using a credit card rather than using Apple’s in app purchase. Not sure why that’s allowed with the current guidelines as I am not overly familiar with them.
It's because you're purchasing goods/services that are used outside of the app. Same thing for the Amazon app, you can go shopping without giving Apple a 30% cut.

It's in the long list of rules on this page: https://developer.apple.com/app-store/review/guidelines/#business

  • 3.1.3(e) Goods and Services Outside of the App: If your app enables people to purchase physical goods or services that will be consumed outside of the app, you must use purchase methods other than in-app purchase to collect those payments, such as Apple Pay or traditional credit card entry.
 

bcortens

macrumors member
Aug 16, 2007
96
76
Ontario Canada
Here's a plan to allow for outside payment: remove your app from whichever app store, launch it on your own platform, and accept payments through that. "But then I'd have to build my own platform and it wouldn't have hundreds of millions of users like Apple and Google do." Yeah, that's the point - you have to give in order to get, I don't understand developers wanting all the benefits of these world class ecosystems but without paying into them. I'd love to drive a Lambo at the price of a Civic but I don't live in South Korea so I'd never win that court case.
So long as Netflix gets to exist without paying apple's percentage I think this argument is incoherent... yes there is a special exemption carved out for them and a few other categories, but the exemptions are mostly arbitrary. If the argument is that the importance of Apple's platform technologies are key in enabling revenue generation, then the exemptions don't make much sense.
 
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danpass

macrumors 68030
Jun 27, 2009
2,559
264
Glory
They simply would get fined and fined and fined till their bankaccount shows a big 0.
What I mean is ... "No. We're outta here."

how big is the South Korean market? How big is it compared to the rest of the world?

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edit:

it appears that SK has ~50m people and the cell phone penetration is close to 100%.

Pretty damn good.

The phone OS breakdown is close to 50/50 between iOS and Android.

Let's say Apple says "No, goodbye."

Then about 25 MILLION people are going to be looking real hard at the South Korean politicians ...

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azentropy

macrumors 68030
Jul 19, 2002
2,960
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Surprise
I can imagine all free apps will now need to pay some sort of extra fees for all the things that would now be costing Apple and Google a lot of money.


Right. Apple should develop a "Store/Third Park Payment API" as required that is only available to license outside of the regular developer program. Charge additional $$$ for that new program.
 

LivingMyBeachLife

macrumors member
Sep 10, 2021
32
47
And when the payment systems and/or third party payment systems used by the developers a) have their systems compromised resulting in stolen payment information and/or b) sell customer data to other non-related entities, don't go crying to Apple and Google for help. As for me, I will continue to use Apple's payment system.
 
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