In September, South Korea passed a new law that prevents Apple and Google from forcing developers to use their in-app payment methods. And the government asked both tech giants to submit their compliance plans adhering to the new regulatory law.
Reuters reports that the Cupertino tech giant is resisting making changes to the App Store and has told the government that its policies are already compliant with the amended Telecommunication Business Act.
Driven by the Fear of losing its dominance, Apple refuses to change App Store payment structure
Under the new law, Apple has more to lose than Google. Android devices already allow developers to distribute their apps outside the Play Store, on the platform, and not give Google commission on the in-app purchases. But iOS devices are locked to third-party apps distribution. All apps on iOS devices can only be downloaded from the App Store and the company charges a 15% or 30% commission on all in-app purchases.
Jung Jong-chae, a lawyer specialising in antitrust matters, said Apple had more to lose than Google from the Korean regulation.
“Differences between Apple and Google in willingness to give ground may be because Apple controls everything from hardware to operating system (OS) to app market to payment system,” he told Reuters.
“And (Apple) has more to lose if its dominance breaks on any front, which could lead to calls for openness on other fronts.”
As per the report, by not making changes to the App Store, the iPhone maker could face an investigation into its compliance.
“This goes against the purpose of the amended law.
The law went into effect last month but Apple had told the South Korean government that it was already complying and did not need to change its app store policy, said a Korea Communications Commission (KCC) official in charge of the matter.”
Regulators in South Korea and the U.S are pursuing new laws to contain the dominance of tech giants over the apps economy. EU Commission’s antitrust bills are delayed due to disagreement on their implementation.