South Korea's parliament on Tuesday (8/3) approved a bill that would prohibit Apple and Google's app stores from forcing software developers to use their payment systems.
Previously, Apple and Google were facing worldwide scrutiny over their app stores. Currently the two hold a duopoly in the market with most smartphone users using one of the two stores for app downloads.
However, both Apple and Google charge a fee for taking part of any transactions made within the app from the developer and do not allow third party payment methods.
Launching from Gizmochina, Thursday (10/3/2022) telecommunications regulators in countries such as South Korea have targeted the Google Play Store and iOS App Store.
South Korea recently passed a new law, an amendment to the Telecommunications Business Act that will help remove the dominance held by Apple and Google.
Both companies usually charge a 30% fee on developers, but a new rule called enforcement regulation will help developers bypass this fee.
The new rules will go into effect March 15 and prohibit forcing certain payment methods on mobile content providers."
"In order to prevent circumvention of indirect regulations, the types and standards of prohibited acts have been set as strictly as possible within the scope delegated by law." said Han Sang-hyuk, Chairman of the Korean Communications Commission (KCC)
So now, any violation can account for up to 2% of the average annual revenue from the related business practice, as per the new rules.