South Korea bill to restrict Apple and Google from charging app store commissions

south korea bill to restrict apple and google from charging app store commissions

Korean parliament bill aims to take down the commission structure of the app stores completely.

Apple and Google are being criticized worldwidefor their commissions for every in-app purchase listed in the app store. Both the tech giants charge a commission of up to 30% on in-app purchases; however, it can be less for some developers.

Korean parliament's legislation and judiciary committee is now expected to approve the amendment of the Telecommunications Business Act, dubbed the "Anti-Google law," banning app store operators with dominant market positions from forcing specific payment systems.If the bill gets the committee's approval, it will be presented for a final vote on Wednesday.

Lawmakers in South Korea have been raising the issue of the tech giants' commission structure since last year.Apple and Google have both faced global criticism because they require software developers using their app stores to use proprietary in-app payment systems that charge commissions of up to 30% on in-app purchases.

The European Union last year proposed the Digital Markets Act, aiming at app store commissions. Even senators in the United States introduced a bill last month that would restrict Apple and Google from controlling the market. Seeing the worldwide concerns, Apple and Google have already proposed a lower service fee it charges developers, coming down from 30% to 15%. The app store commission fees are a significant source of income for both Apple and Google. However, the Korean parliament bill aims to take down the commission structure of the app stores completely.