31.08.2021

South Korea has adopted a "Law against Google". It will allow mobile developers to use third-party payment systems

South Korea has become the first country to legislatively limit the power of Apple and Google over mobile app stores. According to analysts, this could set a precedent.

According to the CNBC business portal, today the National Assembly of South Korea adopted an amendment to the law on telecommunications business. Recall that this amendment received the unspoken name “The Law against Google”. It will prohibit mobile stores from imposing their payment systems on developers for transactions inside applications.

For the amendment to enter into force, it must be signed by President Moon Jae-in.

“This is [the solution] It can lead to similar actions in other countries,said Guillermo Escofet, an analyst at Omdia. “Regulators, legislators and judicial authorities in North America and Europe are carefully studying the billing rules of the stores. And most of them are hostile to the huge power that is concentrated in the hands of technology giants.”

Apple and Google did not ignore the initiative of the Korean authorities.

“We believe that users will now have less confidence in the App Store’s in—app purchase system,” Apple said. “Because of this, the capabilities of more than 482 thousand Korean developers who have earned over 8.55 trillion won with us today will be limited.”

At the same time, Google noted that it would think about how to comply with the law without risking its store.

We add that the “Law against Google” will allow the Korean government to require the owners of mobile stores to “prevent damage, as well as protect the rights and interests of users.” In addition, officials will be able to arrange inspections and mediate disputes concerning payments within applications.

“The South Korean government has made a bold and historic decision today. It marks a grandiose step in the fight for a fair ecosystem of applications,” a representative of Match Group, the owner of Tinder, commented on the situation. “We hope that the law will be signed quickly, and we call on legislatures around the world to take similar measures to protect their citizens and companies from the monopoly of Internet-restricting gatekeepers.”

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