A new South Korean law will force Apple and Google to let developers choose their own payment systems, bypassing their 30% cuts.
South Korea has passed a new bill that forces app stores to let developers use payment systems of their choice. Essentially, this means app devs can sidestep Apple and Google’s up to 30% cuts by transacting directly with consumers or using a service that takes a smaller cut. The Telecommunications Business Act bill passed by South Korea’s National Assembly will become law when it’s signed by President Moon Jae-in, Bloomberg reported, which could be as early as next month. The bill has obvious implications for Apple and Google’s businesses, as well as the ongoing legal suits Epic Studios brought against both companies. Epic would now be able to secure payments from users directly by using its own pay system and avoid giving Apple or Google any cut of the revenue. Apple has used its App Store as a gatekeeper for software, requiring developers to run through its approval process to release apps intended to run on iPhones (on iOS) and iPads (on iPadOS). Google permits ‘side-loading’ apps for phones and tablets running its Android operating system, but both it and Apple have forced apps to pay through first-party stores: if you’re making money on your app, the tech giant that owns the OS and associated app store will take its cut.
