San Francisco, Sep 1 (SocialNews.XYZ) US lawmakers who seek increased regulation of Big Tech applauded the passage of a South Korean law that will force Apple and Google to accept outside payments in their respective app stores.
South Korea could soon become the first domino to fall in a worldwide effort to extricate Apple and Google from profits earned by developers on their online marketplaces, reports AppleInsider.
The country's parliament on Tuesday voted to approve regulations that would bar app store operators from requiring the use of first-party payment systems.
The bill could significantly impact Apple and Google's bottom lines if signed into law by President Moon Jae-in, as both companies take an up to 30 per cent cut of sales and in-app purchases.
Implementation of alternative payment systems would allow developers to effectively bypass the commission, the report said.
US lawmakers keen on placing restrictions on Big Tech players championed the decision from South Korea's National Assembly.
The move comes amid growing global scrutiny of Google and Apple, who maintain a strong grip over mobile ecosystems, for requiring developers on their app stores to use their proprietary payment systems that charge fees of up to 30 per cent when users purchase digital goods within apps.
Developers around the world have questioned app market operators' exclusive in-app payment systems, opposing their relatively high commissions and demanding that they should be able to freely use other systems, a report said earlier.
The latest legislation in South Korea is expected to give app developers the choice to use other payment systems, potentially signalling a major shift in how Google and Apple run their app markets, it added.
Source: IANS
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