In a few weeks, App Store and Play Store app developers will no longer be no longer subject to tax on in-app purchases. Following a new law passed by the Korean parliament, Apple and Google are forced to offer an alternative payment system for South Korean users. The apple brand cooperates and unveils its strategy.
Apple hands over plans to Korea Communications Commission on how the App Store will evolve
On August 31, 2021, the Telecommunications Business Act was passed in 180 votes to 0 by the Korean parliament. This new law requires the Apple App Store and the Google Play Store to allow third-party payment systems for in-app purchases. A world first. The Cupertino company has said it will soon allow developers to use alternative payment systems to charge their users.
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In the months leading up to the Korean parliament vote, Apple insisted on the risks of fraud and private data exposure that could result from such a decision. Finally, the American giant very recently submitted plans to the Korea Communications Commission on how the App Store will support alternative payments in the near future. There is for the moment no official date on the entry into force of this new system.
Apple doesn’t want to upset its Korean users
For its part, Google presented its first compliance plans shortly after the law came into force in September. The Mountain View firm is doing this reduce his commission 4% on transactions who do not use their native payment system. The new Korean law provides that companies expose themselves to fines if they refuse to come into compliance and force developers to use only their payment systems. This explains the cooperation of the two American giants.
On this subject, an Apple spokesperson said this: “We look forward to working with the Korea Communications Commission and our Korean developer community on a solution that will benefit our users.”. Apple claims to have a great respect for Korean laws and a long history of working with application developers nationwide. What the American giant does not say is also that he does not especially want not miss this market so important for the App Store.