South Korea passes app store law rules targeting Apple and Google

FILE PHOTO: The Apple Inc. logo is seen in the lobby of Apple’s flagship store January 18, 2011 in New York City, the United States. REUTERS/Mike Segar

March 8, 2022

SEOUL (Reuters) – South Korea has passed detailed rules for a law banning dominant app store operators like Apple Inc and Alphabet’s Google from forcing software developers to use their payment systems, the country’s telecoms regulator said on Tuesday.

South Korea passed the law, an amendment to the Telecommunication Business Act, last year.

It was the first such restriction by a major economy against Apple and Google, which have come under criticism around the world for requiring the use of proprietary payment systems that charge commissions of up to 30%.

The regulations, dubbed the Enforcement Order, come into effect on March 15. They state that the law “prohibits the act of forcing a particular payment method on a mobile content provider” by unfairly exploiting the status of the app market operator, the regulator, the Korea Communications Commission (KCC) said in a statement with.

“In order to prevent indirect regulatory circumvention, the types and standards of prohibited acts have been specified as narrowly as possible within the scope delegated by law,” said KCC Chairman Han Sang-hyuk.

Prohibited actions include app marketers unreasonably delaying the review of mobile content, or denying, delaying, restricting, deleting or blocking the registration, renewal or review of mobile content using third-party payment methods.

Potential fines for violations will be up to 2% of average annual revenue from related business practices, the rules say.

(Reporting by Joyce Lee; Editing by Lincoln Feast.)