South Korea: Here’s why Apple and Google payments are banned

·3-min read
South Korea: Here's why Apple and Google payments are banned
South Korea: Here's why Apple and Google payments are banned

Apple or Google payments are probably the first apps to pop up in your mind when you think of digital payments. However, South Korean MPs believe that their app store and play store are very lucrative and are forcing people to use them. Read to know more about the ‘Anti-Google Law’.

More on the law against Apple and Google Payments

More on the law against Apple and Google Payments
More on the law against Apple and Google Payments

This South Korean law comes at a time when tech giants like Apple and Google face criticism across the world. They charge up to 30 percent of the commission on app sales. Additionally, they require their payments channel to be used, allowing them to collect a share of the transaction fee. It is set to come into force in September.

The bill to ban Apple and Google payments was approved with a massive 180 votes to zero in South Korea’s National Assembly. This makes South Korea the first major economy to pass a law on this issue. The law is locally dubbed as ‘Anti-Google Law’. In the past, three senators in the US introduced a bill to lose the tech firms’ hold on stores. Additionally, lawmakers in Europe are debating to bring in other alternatives to replace and substitute the App Store. However, now South Korea will be a role model for other such laws and bills. In 2019 alone Apple and Google made 24.4 percent and 63 percent of app sales in South Korea.

What does the ‘Anti-Google Law’ provide?

What does the 'Anti-Google Law' provide?
What does the 'Anti-Google Law' provide?

This law bypasses charges set by store provides. Hence, people will have access to a choice of app payment providers. “This law will certainly set a precedent for other countries. As well as app developers and content creators worldwide,” said Kang Ki-hwan from the Korea Mobile Internet Business Association. The law also provoked an angry response from creators and artists. They led a campaign for the law while accusing Google and Apple of their power abuse.

“Without this law, our working environment, where creators are guaranteed of full rewards for their efforts, would’ve been destroyed,” said Seo Bun-gang. Bun-gang is a webtoon artist and head of the Korea Webtoon Industry association. “We need this law to protect the diversity of our industry. A place for artists and creators of all economic backgrounds can share their content without having to worry about the commission fees,” he added.

Anti-Google Law
Anti-Google Law

The tech giants have maintained face that using their payment channels provides a safer space. They believe that software and tech developers can reach people everywhere. Previously, Apple commented that not following the payment channels will lead to the risk of fraud. Additionally, they added that it may undermine the privacy settings and make parental controls ineffective. 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. The very same who have earned more than 8.55 trillion won to date with Apple,” stated Apple.

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