South Korea Bans Apple, Google for Fleecing Software Developers with Commission Charges

“We will reflect on how to comply with this law while maintaining a model that supports a high-quality operating system and app store, and we will share more in the coming weeks.”

Google LLC and Apple Inc. allegedly forcing software developers to use their payment systems has irked South Koreans, prompting an amendment to the Telecommunications Business Act. The amendment to the act validates a ban on these two major app store operators. According to a Reuters report, South Korea’s parliament on Tuesday passed the bill, which will effectively stop the companies from charging commissions on in-app purchases.

Out of 188 attending, 180 voted in favor of the bill, dubbed as the “Anti-Google Law”.

In a statement to Reuters, a Google spokesperson said, “We will reflect on how to comply with this law while maintaining a model that supports a high-quality operating system and app store, and we will share more in the coming weeks.”

Defending its move, Google asserted that its services fee helps keep Android free. 

Apple in a statement to Reuters said, “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 KRW8.55 trillion to date with Apple.”

Several companies and non-profits, including Match Group and The Korea Internet Corporations Association, welcomed the parliament’s decision.