Apple, Google asked to turn in S.Korea compliance plans to allow third-party payment options in apps by mid-October

In late August, South Korea’s parliament passed a bill which will bar tech companies operating app stores in the country including Apple and Google from requiring developers to use their own payment systems that charge them up to 30%.

According to Reuters, Apple and Google have been asked to turn in by mid-October compliance plans for the new South Korean law, which is yet to come to effect.

In August, Apple announced that it settled a lawsuit filed by US developers Donald Cameron and Illinois Pure Sweat Basketball in 2019 who accused the iPhone-maker of being anti-competitive for requiring developers to distribute iOS apps only through the App Store. As part of the agreement, Apple announced that it will allow developers to use communications such as email to inform their users about alternative payment methods outside the iOS ecosystem.

Following the South Korean law, Apple said it was concerned that alternative payment systems will put users at risk of fraud and privacy violations.

‘’The proposed Telecommunications Business Act will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections, make it difficult to manage their purchases, and features like “Ask to Buy” and Parental Controls will become less effective,’’ the company said. 

‘’We believe user trust in App Store purchases will decrease as a result of this proposal—leading to fewer opportunities for the over 482,000 registered developers in Korea who have earned more than KRW8.55 trillion to date with Apple.’’

The enforcement ordinance is expected to be drafted within six months or possibly earlier, the official said.