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LEGAL CORRESPONDENT – MANINI KAUR
November 20, 2021: The South Korean telecommunications regulator announced that app store owners might face fines of up to 2% if they force developers to adopt their own in-app payment methods.
According to the Korea Communications Commission, under the enforcement decree of the new rule aimed at limiting Google and other app store operators' dominance, such app store operators will have to pay 1% of their income for delays in assessing apps (KCC).
South Korea amended the Telecommunications Business Act in August, making it the first jurisdiction to impose restrictions on global tech firms' in-app billing policies.
According to the Yonhap news agency, the move came amid growing global scrutiny of Google and Apple, which have a strong grip on mobile ecosystems, for requiring developers on their app stores to use their proprietary payment systems, which charge fees of up to 30% when users purchase digital goods within apps.
Developers from all around the world have questioned app market operators' exclusive in-app payment methods, objecting to their comparatively expensive commissions and requesting that they be able to utilise other systems without restriction.
According to the Korea Mobile Internet Business Association, overall sales from Google's Play store were around 5 trillion won ($4.23 billion) last year, while total sales from Apple's App Store were around 1.6 trillion won.
Google announced earlier this month that it would offer an alternate payment option on its app store in South Korea for a 4 percent lower service charge.
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