App marketplaces in South Korea are now banned from forcing developers to use their in-app purchase systems.
South Korea’s National Assembly has approved a Bill that will require Apple and Google to change the way its app store payment systems operate in the country. The Bill is currently awaiting to be signed by South Korean President Moon Jae-In before it goes into effect. The new law is an amendment to South Korea’s Telecommunications Business Act, and will ban app store marketplaces from unreasonably delaying the approval of apps or deleting them from the marketplace. The Bill will also ban app marketplaces from forcing developers to use their in-app purchase systems, with developers in South Korea now able to choose alternatives or create their own marketplaces while still being allowed to operate in existing app stores. Companies that fail to comply with the new laws could be fined up to 3% of their South Korea revenue by the country’s media watchdog, the Korea Communications Commission. The new law marks the first time a government has addressed competition issues regarding the app payments market. Outside of South Korea, Australia’s consumer watchdog is investigating whether the app stores of major providers such as Apple and Google are anti-competitive as part of its digital platforms probe.
