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Apple and Google must submit plans to comply with South Korea’s app trade law by mid-October


The South Korean government on Wednesday asked Apple and Google to prepare proposals regarding their compliance with a new law banning app store operators from requiring the use of a first-party payment system.

A regulatory official said both companies have until mid-October to submit compliance plans, he reported Reuters.

The request comes as the Korean Communications Commission prepares to draft an enforcement regulation that will be in line with the recently adopted amendment to the country’s Telecommunications Companies Act.

The law, which local media called the “Anti-Google Law,” prohibits Apple and Google from forcing developers to use the first payment systems for in-app purchases. Additionally, the amendment prohibits application trade rules that discourage developers from marketing their goods on other platforms.

According to a regulatory official quoted in today’s report, the Korean Communications Commission will complete the enforcement measures within six months.

Korea’s new legislation represents the first successful attempt by the big government to extract app store operators from the revenue of developers earned in online markets. While Korean action is not expected to significantly affect both companies, identical laws are being considered in the U.S. and threaten to jeopardize the outcome of technology giants.

Apple and Google reduce sales by up to 30% and in-app purchases.

Apple has argued that the legislation endangers the safety and security of App Store users.

“The proposed Telecommunications Affairs Act will put users who buy digital goods from other sources at risk of fraud, jeopardize their privacy protections, make shopping management more difficult, and features like ‘Ask to Buy’ and Parental Controls will become less effective,” Apple said after that the law passed through the South Korean parliament in September.



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Naveen Kumar

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