Technology giant Apple has announced its plans to allow alternative payment systems in South Korea. This big move has been taken in order to comply with the newly approved laws in the country where app store operators will be banned from forcing people to use their in-app payment systems.
The company will be now offering an alternative payment system at a much-reduced service charge. At present, Apple charges a 30% service charge, the company told the commission. The implementation of this new payment system will be discussed with the Korea Communications Commission (KCC). The KCC also said that the app store operators who don’t comply with the new rules related to in-app payments are set to face a hefty fine.
According to a report by The Korea Herald, search giant Google said that it will be offering an alternative payment system on Google Playstore in the country at a minutely reduced service charge to comply and abide by the new law.
Apple’s statement regarding the payment system
The iPhone maker said that they’re looking forward to working with the Korea Communications Commission. The company further added to the statement that it has immense respect for the laws of Korea and its rich history of collaboration with highly-skilled app developers. It further added that Apple’s work will be driven and guided by keeping the App Store a safe place always for users to download the mobile apps they love.
The KCC says that the various app store operators are to face a fine, in case they force developers to use their in-app payment systems. South Korea is the first country that has stopped the big technology titans from mandating the use of their in-app payment and billing systems. After this big move, more countries are o follow and find ways on how to eliminate or curb the same.
Apple said that this reduction in the compliance plans was submitted to the commission. Then, the exact date or time when the changes in the app store’s service fee of Apple will take effect wasn’t mentioned as of this time.
As reported by Reuters, Apple already submitted its plans to allow 3rd-party payment & billing methods on its app store to the Korean telecommunications regulator. Moreover, the KCC asked the search giant Google to submit its compliance plan before it can operate its app store in Korea without any issues.
Apple and Fortnite
In the U.S., Apple is facing a lawsuit by the Fortnite-creator Epic Games since 2020. The game-maker has been trying to get around the 30% fee of Apple on in-app purchases by launching its in-app payment system of its own.
A judge in the United States ordered the iOS- developer company to change its App Store rules that ban developers from adding links to buttons that take users to outside payment systems over the own system of Apple.
Since the launch of the Apple App Store in 2008, app store developers have earned over $260 billion. $60 billion was just in 2021.
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