Google and Apple will have to allow app developers to use alternative payment systems under legislation just passed by South Korea that could set the stage for similar action in other countries.
The amended Telecommunications Business Act was approved by the country's National Assembly on Tuesday, with the backing of President Moon Jae-in's party. It will become law once President Moon signs it.
Under the new law, developers will be able to select which payment systems to use to process in-app purchases, meaning they may be able to bypass hefty charges imposed by the two longtime leaders.
Apple's commissions, for example, go as high as 30% on some purchases made through the company's platform — and developers say they have little choice but to comply, since Apple does not allow customers to download apps from any source other than the company's official store.
The South Korean bill bans app store operators from "unfairly using their market position to force a certain manner of payment" upon businesses. Once enacted, violators could be fined up to 3% of their annual sales, in addition to up to 300 million Korean won ($257,000) in penalties.
The legislation has been dubbed the "anti-Google law" in the country, as politicians argue that the Silicon Valley behemoth has taken advantage of itslongstanding dominance and undercut developers.
In July, South Korean lawmaker Jun Hye-sook urged parliament to move the bill along quickly, calling it "a law to prevent Google from...
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