South Korea enacts ‘anti-Google’ law

The law will prevent Google and Apple from forcing developers to use their in-app billing systems when building apps.

The move makes it the first time globally that a government has intervened to prevent Google and Apple from imposing their own payment walls on in-app purchases, and could see other countries implementing similar measures on the two tech companies, which dominate the app payment market.

Following some delays, South Korea’s preliminary committee voted to proceed with the revised Telecommunication Business Act last week.

The news comes on the heels of Apple’s announcement that it would change some rules on communicating with app users, allowing developers and digital services alternative ways to make payments. Apple suggested the proposed Telecommunication Business Act would expose users to risks related to purchasing digital goods from other sources, including fraud and less privacy protection, and make it difficult to manage their purchases.

“Developers can use communications, such as email, to share information about payment methods outside of their iOS app,” Apple said. “As always, developers will not pay Apple a commission on any purchases taking place outside of their app or the App Store. Users must consent to the communication and have the right to opt out.”

However, Spotify said the measures addressed only one of many issues and criticised Apple of trying to distract policymakers.

“Apple’s proposed concessions fail to address the most basic aspects of their anticompetitive and unfair App Store practices,” Spotify’s head of global affairs and chief legal officer, Horacio Gutierrez, said. “They are attempting to distract policymakers and regulators and slow down the momentum that’s building around the world to address their behaviour.”

In March, Google announced that it would reduce its commission from 30% to 15% for all in-app purchases. The company later backtracked and said it would implement the new in-app billing system from March 2022.