Regulator rules ban on in-app links to payment options that don’t touch the Play Store is not in the spirit of the law
South Korea’s Communications Commission has determined that Google has not complied with the nation’s law – the first of its kind in the world – requiring operators of app stores to allow third-party payments. The law came into effect in September 2021, after South Korea decided the likes of Google and Apple wield too much power to set prices, and skim fees, and that developers and innovation are therefore harmed. Google quickly agreed to comply with the law, and Apple came to the party after giving the matter a few weeks of consideration. But Google’s response saw it continue to funnel all transactions through the Play Store, and to charge a fee for all transactions – even when users chose third-party payment providers. Google did reduce the fees it charges when users choose third-party payments – but by just four per cent.
