South Korea passed a bill on Aug. 31 banning platforms like Google and Apple from forcing developers to use built-in payment systems. The first-of-its-kind bill will become a law once President Moon Jae-in signs it as expected; his party championed the bill.
- Currently, in-app purchases flow through the respective app stores, and the tech giants collect a 30% commission from developers.
- The bill also states that if Google and Apple fail to comply, they could face fines of up to 3% of their South Korean revenue.
- It also bans them from unreasonably deleting apps or delaying approval.
- The bill could have ramifications globally as many countries like the U.S, Australia and E.U. are considering similar laws.
- Apple recently settled a lawsuit (in the U.S) against it by app developers and agreed to let developers communicate with users directly and get paid outside the App Store. It also set up a $100M fund for payout to small and medium developers.
- Recently unsealed court filings show that in 2019 Google Play generated a revenue of $11.2B and a gross profit of $8.5B.