In compliance with the new “Telecommunications Business Act” in South Korea, Apple now allows developers to add links to alternative payment methods in the apps on the App Store.
To regulate the dominance of tech giants in the apps economy, the South Korean antitrust regulator passed a new law to prevent Apple and Google from forcing developers to use their own payment methods on iOS and Android in late 2021.
As Apple’s iOS ecosystem is more controlled than Android’s, Apple showed more resistance to making changes on the App Store. The Cupertino tech giant argued that the App Store provided a safe digital market for developers and consumers to download apps, subscribe to services, and make payments.
South Korean developers use Apple StoreKit External Purchase Entitlement to link alternative payment methods in their apps
into South Korean legal demands, Apple has finally announced that South Korean can now offer alternative payment methods in their apps through StoreKit External Purchase Entitlement.
The Telecommunications Business Act in South Korea was recently amended to mandate that apps distributed by app market operators in South Korea be allowed to offer an alternative payment processing option within their apps. To comply with this law, developers can use the StoreKit External Purchase Entitlement. This entitlement allows apps distributed on the App Store solely in South Korea the ability to provide an alternative in-app payment processing option.
Developers who want to continue using Apple’s in-app purchase system may do so and no further action is needed.
In addition, the company also notified the developers who wish to link alternative payment methods that they will not be able to offer select safety and payment features like Family Sharing, refunds, subscriptions management, and others.
If you’re considering using this entitlement, it’s important to understand that some App Store features, such as Ask to Buy and Family Sharing, will not be available to your users, in part because we cannot validate payments that take place outside of the App Store’s private and secure payment system. Apple will not be able to assist users with refunds, purchase history, subscription management, and other issues encountered when purchasing digital goods and services through an alternative purchasing method. You will be responsible for addressing such issues.
The App Store changes in South Korea are introduced amidst trouble in the Netherlands. The Dutch Authority for Consumers & Market (ACM) has been imposing big fines on Apple for not making the required changes on the App Store to enable developers of dating apps to add links to alternative payment methods.