Ivan is a Big Tech and India specialist. He also covers security, platforms, AI, and platforms for TNW. It's a lot of stuff. He loves to say "Bleh!" Ivan is a journalist covering Big Tech, India and policy. He also covers security, platforms, and apps to TNW. It's a lot of stuff. He loves to say "Bleh."
South Korea will soon pass a landmark amendment in a law that could force Apple or Google to relinquish their control over developers' commissions.
Although there have been many discussions about these companies being too able to collect fees from their app stores, this is actually the first country that has taken a firm step to stop it.
According to Reuters, a South Korean parliamentary panel has voted in support of the amendment today. Today could be the last day for the parliament to vote.
App developers are charged 30% by Apple and Google for in-app purchases. They have lowered these fees to 15% over the past year for revenue below $1 million.
Both companies believe their in-app purchases provide developers with a solid and secure framework to make money and avoid fraud.
Apple responded to South Korea's new privacy rule amendment by stating that this could pose a threat to users.
Users who buy digital goods from third parties are at risk of fraud and their privacy protections will be compromised, making it more difficult for them to manage their purchases.
According to the company, this will reduce opportunities for more than 482,000 Apple developers in South Korea who have earned KRW8.55 Trillion ($7.3 billion) so far.
Comparatively, Google Play Store sales are much higher. The Korea Times reported that it reached KRW5 trillion (4.3 billion USD) last year.
A bipartisan bill in the US was introduced this month. It aims to limit Apple's and Googles dominance of in-app payments systems in their app store.
Companies like Epic Games, Spotify and others have voiced concern about unfair app commissions.
Did you know that we have a newsletter dedicated to consumer tech? It's called Plugged In, and you can sign up right here.
