In South Korea, Seoul’s parliament passed a law that could fundamentally destabilize the payment system for app stores operated by Google and Apple and could deal a serious blow to the two companies’ revenues – Writes and HWSW. One of the most important parts of the law governing payment terms for digital goods is that after the law comes into force
The world’s dominant app markets (for example, Play Store and App Store) cannot attract developers when making in-app payments.
When we buy some digital content in the Apple or Google Store, only a portion of the amount paid goes to the content producer, with a large portion of the money going into the pockets of the operating companies. However, the new Korean law states that app developers and platform operators can bypass Google and Apple systems to provide a very large commission (15-30 percent) by providing users with an alternative payment solution – this applies to one-time and recurring (so also in the subscription system ). Although South Korea was the first to vote in favor of such a law, it is not unreasonable in the future for other countries to embark on a similar path, which could negatively affect the impressive revenues of the two companies in the long run.
Google has previously argued against the law that the Play Store is not just a front for processing transactions, and that paid commissions allow Android to be a free platform for billions of users. On the other hand, Apple is defending its own solution by exposing new customers to a new risk, both financially and in terms of privacy, as a result of the law being passed now, which could fundamentally undermine trust in all similar transactions, regardless of channel. Happen or occur.