SEOUL — South Korean MPs on Tuesday passed a law
banning Apple and Google from forcing app developers to use the tech giants'
payment systems, effectively declaring their lucrative App Store and Play Store
monopolies illegal.
اضافة اعلان
The bill was approved by 180 votes to nil in the National Assembly,
making South Korea the first major economy to pass legislation on the issue, in
a move that could set a precedent for other jurisdictions around the world.
In the United States three senators this month introduced a
bill to loosen the
tech firms' grip on their stores, while in Europe lawmakers
are debating legislation that could force Apple to bring in alternatives to the
App Store.
The South Korean measure comes as Apple and Google face
global criticism for charging up to 30 percent commission on app sales and
requiring their own payment systems be used that collect a share of the
transactions.
The Korean law — locally dubbed the "Anti-Google
Law" — will offer users a choice of app payment providers, allowing them
to bypass charges set by the store owner.
"This law will certainly set a precedent for other
countries, as well as app developers and content creators worldwide," Kang
Ki-hwan at the Korea Mobile Internet Business Association told AFP.
It is expected to come into force in September, according to
reports.
Later this year Google plans to enforce globally a
requirement for developers to use its payment system — with its 30 percent
commission above a certain threshold — for in-app purchases.
In South Korea, it is also planning to charge commission on
all content payments from October, ending an exemption where commissions were
only payable for online games.
'Fair compensation'
That announcement prompted an angry response from South
Korean artists and creators, with web fiction writers and webtoon artists
accusing Google of "power abuse" and campaigning fiercely for the new
law.
"Without this law, our working environment — where
creators are guaranteed of full rewards for their efforts — would've been
destroyed," Seo Bum-gang, a webtoon artist who heads the Korea Webtoon
Industry Association, told AFP.
"We need this law to protect the diversity of our
industry, where artists and creators of all economic backgrounds can share
their content without having to worry about the commission fees."
Apple and
Google have maintained that commissions charged
are standard in the industry and fair compensation for building safe
marketplaces where developers can reach people around the world.
Ahead of the debate, Apple told AFP that it would put
digital purchasers at risk of fraud, undermine their privacy protection and
render parental controls less effective.
"We believe user trust in App Store purchases will
decrease as a result of this proposal —leading to fewer opportunities for the
over 482,000 registered developers in Korea who have earned more than 8.55
trillion won to date with
Apple," it said in a statement.
Google Korea did not respond to requests for comment from
AFP.
The two tech giants dominate the online app market in South
Korea, the world's 12th largest economy known for its technological prowess.
Google's Play Store made revenue of almost 6 trillion won
($5.2 billion) in 2019, accounting for 63 percent of the country's total,
according to data from Seoul's science ministry.
Apple's App Store had a 24.4 percent share of total app
store sales in the country in the same year.
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