Monday, December 23, 2024

Google plans to allow third party payments systems in S.Korea

Google (GOOGL.O) of Alphabet (GOOGL.O) said on Thursday that it will allow third-party payment systems in South Korea to comply with a new rule that prohibits large app store operators from forcing software developers to use their payment systems.

Google’s announcement comes after the Korea Communications Commission (KCC) asked the American tech giant to submit compliance plans for the new law, which took effect in September.

Late in August, the South Korean parliament passed an amendment to the Telecommunications Business Act, called the “anti-Google law,” prohibiting app store operators from compelling developers to use their payment methods, thus prohibiting them from taking commissions on in-app transactions.

The majority of the new legislation took effect in mid-September.

Alternative billing systems, according to Google, may not provide the same level of security, payment methods, or features as Google Play’s billing system.

According to the KCC, Google has submitted measures that would allow for alternate payment systems with cheaper prices. These restrictions will only apply to South Korea. According to the KCC, Google plans to apply the new payment policy this year.

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