Monday, December 23, 2024

Apple submits plans to allow alternative payment systems in S.Korea

Apple Inc (AAPL.O) submitted proposals to allow third-party payment systems on its App Store to comply with legislation prohibiting large app store operators from forcing software developers to use their payment systems, according to South Korea’s telecoms regulator.

After the bill was passed in August last year and went into force in September, the Korea Communications Commission (KCC) invited Apple and Alphabet’s (GOOGL.O) Google to submit compliance plans.

Google announced its plans to allow alternative payment systems in South Korea in November to comply with the amended Telecommunication Business Act, dubbed the “anti-Google law”

“We look forward to working with the KCC and our developer community on a solution that benefits our Korean users,” Apple said in a statement but did not provide details such as the timeline of when the new payment systems will take effect or commission fee rates.

The KCC will be contacted for more information, according to the regulator. According to the KCC, Apple aims to offer other payment systems in exchange for a cheaper service cost than the existing 30% commissions.

In the United States, Apple is fighting a lawsuit filed by “Fortnite” creator Epic Games in 2020, in which the game maker attempted to circumvent Apple’s 30% in-app purchase tax by developing its own in-app payment system.

 

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