South Korea passes bill limiting Apple and Google control over app store payments

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Visitors look at Apple Inc. iPhones and iPads on display at the SK Telecom Co. T Factory flagship store in Seoul, South Korea, June 11, 2021.

SeongJoon Cho | Bloomberg | Getty Images

South Korea’s parliament has approved a bill that will make it the first country to impose curbs on Google and Apple’s payment policies that force developers to only use the tech giants’ proprietary billing systems.

The legislation will become law once signed by President Moon Jae-in, whose party has been a vocal supporter of the bill.

Apple and Google’s policies usually require developers to pay the tech giants a commission as high as 30% of every transaction.

The bill, approved Tuesday, means that developers can avoid paying commission to major app store operators — like Google and Apple — by directing users to pay via alternate platforms.

A Google spokesperson said its service fee “helps keep Android free, giving developers the tools and global platform to access billions of consumers around the world.”

“We’ll reflect on how to comply with this law while maintaining a model that supports a high-quality operating system and app store, and we will share more in the coming weeks,” the Google spokesperson added.

Apple did not immediately respond to CNBC’s request for comment.

The law, sometimes referred to as the Anti-Google Law, was submitted to parliament last August, according to Yonhap News.

Some 180 of 188 attending lawmakers voted in favor of passing the amendment made to the Telecommunications Business Act, Reuters reported.

Media reports last week said the legislation and judiciary committee of the National Assembly approved revisions of a bill aimed at stopping app store operators from forcing developers to use specific payment systems.

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