South Korea bans Google, Apple payment monopolies

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South Korea bans Google, Apple payment monopolies
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South Korea’s National Assembly approves legislation that bans app store operators such as Google and Apple from forcing developers to use their in-app payment systems.

FILE - This combo of photos shows the logo for Google, top and Apple, bottom. South Korea’s National Assembly approved legislation on Tuesday, Aug. 31, 2021, that bans app store operators such as Google and Apple from forcing developers to use their in-app payment systems.

The tech giants have faced widespread criticism over their practice of requiring app developers to use in-app purchasing systems, for which the companies receive commissions of up to 30%. They say the commissions help pay for the cost of maintaining the app markets. Apple criticized the legislation in a statement Tuesday, saying it 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" and make parental controls and other features less effective.

Regulators in Europe, China and some other markets worry about the dominance of Apple, Google and other industry leaders in payments, online advertising and other fields. Chinese regulators have fined some companies for antimonopoly violations, while other governments are wrestling with how best to keep markets competitive.

In the U.S., Apple last week announced that it had agreed to let developers of iPhone apps send emails to users about cheaper ways to pay for digital subscriptions and media.

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