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Original poster
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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.

General-App-Store-South-Korea-Feature-Feature.jpg

The bill was originally supposed to be voted on yesterday, however, more urgent matters presented to South Korea's National Assembly meant the bill was postponed. The bill is an amendment to the existing Telecommunications Business Act. It aims to ban Apple and Google from unfairly exploiting their market position to "force a provider of mobile content, etc., to use a specific payment method."

Apple's App Store has been under increased scrutiny in recent months. South Korea's bill represents the first time any government has taken substantive legislative steps to crack down on the platforms. Lawmakers, developers, and others have called for increased regulation of both Apple and Google's app distribution services, noting the companies' potential to engage in anti-competitive behaviors.

Under the now passed bill, Apple in South Korea will no longer be permitted to limit developers to only use its in-app purchasing system, which grants it a 15% to 30% commission for all purchases made. The commission has been under the spotlight ever since game developer Epic Games attempted to bypass Apple's App Store policy by implementing a direct payment method for users last year.

Apple has called its in-app purchasing system a safe and secure way to allow users to purchase digital goods within apps, while some have called the company's commission unfair. As we noted yesterday, Apple operates its App Store under one set of rules applied to developers internationally. While South Korea's bill is specific to users in the country, it may have a domino effect worldwide.

Besides a 15% to 30% commission on all in-app digital purchases made, Apple charges developers a $99 annual fee to be part of its Apple Developers program. Those two revenue streams are just a few ways Apple maintains a profit for the App Store. In the third quarter of this year, the tech giant reported an all-time high revenue record of $17.5 billion in its services business, including the App Store.

Update: In response to the bill passing, Apple has provided MacRumors with the following statement. The statement, the same one used previously when asked on the legislation, says that user trust in the App Store will decrease as a result of the bill.
The Telecommunications Business Act will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections, make it difficult to manage their purchases, and features like “Ask to Buy” and Parental Controls will become less effective. We believe user trust in App Store purchases will decrease as a result of this legislation — leading to fewer opportunities for the over 482,000 registered developers in Korea who have earned more than KRW8.55 trillion to date with Apple.

Article Link: South Korea Passes Bill Banning Apple From Requiring Developers to Use App Store In-App Purchase System
 
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Morgenland

macrumors 65816
May 28, 2009
1,190
1,238
Europe
Bye-bye, South Korea.
Now this virus has been released, let's see if other countries catch it.
As a customer, I don't want a hundred shops and pay-systems, I need one that has everything.
I never had a problem to be "forced" to Apple's in-App-System.
More chaos forced by lawmakers, silly.

I am looking forward to their various pay systems, maybe they will copy from

T-Mobile

which was also considered safe.
It's amazing that some developers believe they'll make more money then.
Use the Apple shop, but with your own cashier ;-) Strange idea.
 
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Mitochris

macrumors regular
Feb 9, 2011
124
166
so what is the alternative? Apple and Google charging the developer for posting an app in their stores? I understand that the current system is not great, but I do want to have a store system, where there is some sort of oversight of the apps available.
 

nyuszika7h

macrumors newbie
Sep 19, 2020
29
68
so what is the alternative? Apple and Google charging the developer for posting an app in their stores? I understand that the current system is not great, but I do want to have a store system, where there is some sort of oversight of the apps available.
They already do. Google’s fee is $25 one-time and Apple’s is $99/year.
 

huges84

macrumors newbie
Mar 7, 2012
27
16
I see nothing about when this soon-to-be law goes into effect in this or the WSJ article. If the timing is too aggressive then Apple may simply shut down all app purchases and subscriptions in South Korea.

Heck, Apple may do it anyways to play a game of chicken with the government and send a message to other countries. I don’t think they should, but they might.

Apple doesn’t really need app revenue. They could take just 3% or whatever to pay the credit card fees and pay the server cost out of pocket. It would still be worth it because it’s a major driver of iPhone sales, which are their bread and butter.

If I were Tim Cook, I would drop the cut to something much lower, maybe 10%, ASAP and encourage Google to do likewise. That would take the force out of most of the anti-trust stuff globally. And it would still allow Apple to have their control. Given the results here in South Korea, shareholders would be less upset because the threat of lost App Store revenue is now very real.

It’s better to keep your walled garden and charge lower admission then let the government tear down the walls!
 

69Mustang

macrumors 604
Jan 7, 2014
7,873
15,010
In between a rock and a hard place
Bye-bye, South Korea.
Now this virus has been released, let's see if other countries catch it.
As a customer, I don't want a hundred shops and pay-systems, I need one that has everything.
I nerver had a problem to be "forced" to Apple's in-App-System.
More chaos forced by lawmakers, silly.
Then only purchase apps that use Apple's infrastructure. If you never had a problem being forced to Apple's pay system, you still don't have a problem because you wouldn't be forced to use an alternative pay system or App Store. Just keep doing what you're already doing. Problem solved.
 

ibeginner

macrumors newbie
Feb 1, 2016
7
3
Same act declare yesterday in Russia by anti-monopoly agency - vc(.)ru/legal/287771-fas-obyazala-apple-razreshit-razrabotchikam-ukazyvat-alternativnye-sposoby-oplaty-v-prilozheniyah
 

q64ceo

macrumors 6502
Aug 13, 2010
415
492
Bye-bye, South Korea.
Now this virus has been released, let's see if other countries catch it.
As a customer, I don't want a hundred shops and pay-systems, I need one that has everything.
I nerver had a problem to be "forced" to Apple's in-App-System.
More chaos forced by lawmakers, silly.

You can always buy a Windows phone if you want only one store and one place to pay

Sure, you wont get any security updates and the app selection sucks, but hey, at least its safe and secure. Security thru obscurity.

(You can pick up one cheap on eBay)
 

adrianlondon

macrumors 68040
Nov 28, 2013
3,322
3,869
Switzerland
Bye-bye, South Korea.
Now this virus has been released, let's see if other countries catch it.
As a customer, I don't want a hundred shops and pay-systems, I need one that has everything.
I nerver had a problem to be "forced" to Apple's in-App-System.
More chaos forced by lawmakers, silly.
It's not about you, it's about the developers.

You can continue to buy apps and subscriptions from those developers who stay within the boundaries you like. The more customers that do that, the more developers will stay within the system to ensure sales of their product(s).
 

Marbles1

macrumors 6502
Nov 27, 2011
268
1,113
Bye-bye, South Korea.
Now this virus has been released, let's see if other countries catch it.
As a customer, I don't want a hundred shops and pay-systems, I need one that has everything.
I nerver had a problem to be "forced" to Apple's in-App-System.
More chaos forced by lawmakers, silly.


Nothing is stopping you continuing to use Apple's payment system.

Just like nothing is stopping you using Safari, Pages, Calculator or any other app/service offered by apple.
 

dandbj13

macrumors newbie
Aug 31, 2021
1
33
Birmingham, AL
I strongly suspect this push to change Apple's App Store is not coming from Apple product users. It is coming from people on competitive platforms who want to take away Apple's competitive advantage. Despite that, Apple cannot just pull out of territories because more of these laws will be passed in other places. What they need to do is start trialing some of their countermeasures they have been working on for this eventuality. Developers believe they have won a free ride. I rather suspect they are in for a very different kind of ride.
 

one more

macrumors 68030
Aug 6, 2015
2,556
2,567
Earth
As a customer, I don't want a hundred shops and pay-systems, I need one that has everything.

I guess this has mostly to do with subscriptions and not one-off payments for apps? Like streaming services, educational platforms and such. The easiest examples are Spotify and Netflix. I agree that it might be more convenient to subscribe from within the app, when Apple gets their 15-30% cuts, yet I also understand the service providers not happy about it. As for payment security, if we subscribe to a service on-line with one of our bank cards, it is still pretty safe. It will be interesting to see how this plays out.
 
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q64ceo

macrumors 6502
Aug 13, 2010
415
492
I strongly suspect this push to change Apple's App Store is not coming from Apple product users. It is coming from people on competitive platforms who want to take away Apple's competitive advantage. Despite that, Apple cannot just pull out of territories because more of these laws will be passed in other places. What they need to do is start trialing some of their countermeasures they have been working on for this eventuality. Developers believe they have won a free ride. I rather suspect they are in for a very different kind of ride.
It's coming from people like me. I am an Apple user. I own an iPad. It's the best tablet out there. Do you know why I don't own an iPhone? It's because I cannot do anything close to what I can do on an Android phone. If there were decent Android tablets I'd probably buy one.
 
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