South Korea Set to Force Apple and Google to Allow Third Party Payment Systems [Report]

South Korea will likely be the first country to force Apple and Google to allow apps to use third party payment systems for in-app purchases, reports Reuters.

The parliament's legislation and judiciary committee is expected on Tuesday to approve the amendment of the Telecommunications Business Act, dubbed the "Anti-Google law," that takes aim at app store operators with dominant market positions. If the bill gets the committee's approval, it will be put to a final vote on Wednesday. Lawmakers in South Korea have pushed the issue of the commission structure since mid-2020.

Apple alleges the bill "will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections, make it difficult to manage their purchases."


Earlier this month, U.S. Senators Richard Blumenthal (D-CT), Marsha Blackburn (R-TN), and Amy Klobuchar (D-MN) introduced the Open App Markets Act which would similarly allow for third party payment systems but also protect sideloading of apps and opening avenues for third party app stores. More details here.

In the EU, a similar act has been proposed called the Digital Markets Act (DMA) that would force Apple to allow users to install applications downloaded from the internet or third party app stores. Additionally, an EU investigation reached the preliminary conclusion that Apple distorted competition in the music streaming market as it abused its dominant position for the distribution of music streaming apps through its App Store. The Commission took issue with the mandatory use of Apple's own in-app purchase mechanism imposed on music streaming app developers to distribute their apps via Apple's App Store.

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