South Korea and app store payment terms

stapp · Sep 4, 2021

South Korea has been working towards putting an end to exclusive payment terms on the app stores. They are one step closer to making this a reality as the bill is on its way to becoming a law. This will be a substantial economic blow to Google and Apple.
If the bill is approved by the National Assembly in South Korea this week, it will force both companies to let developers use other third-party payment systems on the Play Store and the App Store. Effectively, it threatens the large cut, between 15% and 30%, taken on each digital purchase.
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So far, the Wall Street Journal has reported that the bill has received an astounding amount of support. Currently, 180 out of 188 legislators have shown their support for the bill, and it will be signed into law by President Moon Jae-in.
The bill includes a very stiff penalty for anyone that does not comply. This penalty would be seizing 3% of the total income from that company. If we put this into perspective, last year, Google reported revenue of 220.14 billion won, a 3% penalty on this amount would be 6.6 billion won (approximately $5.7 million).
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https://www.ghacks.net/2021/09/03/s...country-to-legislate-open-app-store-payments/

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South Korea and app store payment terms

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South Korea and app store payment terms

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