The Legislative and Judicial Committee of the South Korean Parliament is expected to approve an amendment to the Telecom Business Law called the Anti-Google Law on Tuesday, prohibiting app store operators such as Google and Apple from using their monopoly position to generate revenue from developers’ in-app purchases Commissions are drawn from them. This will be the first time that a major economy has adopted such restrictions, which could damage a lucrative source of income for these tech giants.
Apple and Google are facing criticism around the world because they require software developers using their app stores to use a proprietary in-app payment system and charge up to 30% commissions for in-app purchases. The European Union proposed the Digital Markets Act last year, targeting app store commissions. These regulations are designed to affect large companies, but some European lawmakers support tightening the regulations to specifically target US technology giants.
Earlier this month in the United States, three senators introduced a bill to restrict the app stores of companies such as Apple and Google, which they believe are excessively controlling the market. According to a government report released last year, the Google Play app store’s revenue in South Korea in 2019 reached nearly 6 trillion won (US$5.29 billion).
Earlier this year, Google stated that it would lower the commission rate for the first $1 million made by developers through its GooglePlay app store from 30% to 15%. Apple has taken a similar move.
