Apple allows third-party payments for apps in South Korea

Apple will soon allow developers to use alternative payment systems for their apps in South Korea to comply with the country’s new law. According to The Korea Herald, the tech giant has submitted its plans for how its app store would support third-party payments to the Korea Communications Commission. It reportedly didn’t include details on when the changes to its store will take effect and exactly how much it will charge for its service fees. The company did say that the discount for alternative payment transactions will be less than 30 percent.

South Korea passed a law last year – dubbed the “anti-Google law” – that requires major app stores like Google and Apple to allow third-party payment methods. It was a blow to the tech giants who usually have a tight grip on their app stores. Both are even grappling with lawsuits challenging the commission they get from developers. Their most high-profile legal battle is perhaps the one with Epic, which began after the video game developer attempted to evade the 30 percent commission from the companies by offering discounts to users who purchase in-game currency directly from its portal.

The new Korean law will fine companies if they refuse to comply and force developers to use only their payment systems. Google filed its first compliance plans shortly after the law went into effect in September, indicating it will cut its commission by four percent on transactions that don’t use its own payment system. As for Apple, we’ll likely hear more information in the coming months. A spokesperson said in a statement:

“We look forward to working with the KCC and our developer community on a solution that will benefit our Korean users. Apple has great respect for Korean laws and a strong history of working with the country’s talented app developers. Our work will always be guided by keeping the App Store a safe and trusted place where our users can download their favorite apps.”

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