Apple’s Proposal to Allow Third-Party Payment Methods in App Store ‘Lacks Detail,’ Says South Korean Regulatory Commission

Apple's Proposal to Allow Third-Party Payment Methods in App Store 'Lacks Detail,' Says South Korean Regulatory Commission

Thursday February 3, 2022 2:36 am PST by Sami Fathi

Apple’s plans to allow developers to use third-party alternative payments methods within their apps “lacks concrete detail,” according to South Korea’s Communications Commission (KCC).

In August, South Korea passed a law that bans app store operators from requiring developers to use their in-app purchase systems. Last month, Apple submitted its compliance plans to the KCC that would allow apps in Apple’s South Korean App Store to use third-party payment methods within their apps. Apple’s plans include that the company will still take a commission for all purchases made, even those made with third-party alternative payment methods, but specific details were not shared.

Now, ahead of when the final details of the law are finalized and enacted, South Korea’s KCC says Apple’s submitted plan “lack concrete detail,” reports Reuters. KCC is unhappy that both Apple and Google still plan to charge a commission on purchases made with third-party payment methods, arguing that such a commission will entice developers to stay with the app stores’ respective, default payment process.

“As a result of any policy, if app developers find it realistically difficult to use an alternative payment system and resort to using the dominant app store operator’s payment system, it would not fit the law’s purpose,” the official said, adding that this stance would likely be reflected in the final ordinance.”

A similar series of events have taken place in The Netherlands, one of several countries looking into Apple’s ‌App Store‌. Dating apps in The Netherlands will soon be allowed to use third-party alternative payment methods. Apple’s plans to comply with the law in The Netherlands have been criticized for being inadequate in addressing concerns, leading to a fine of 5 million euros per week up to a maximum of 50 million euros until Apple complies.

“We look forward to working with the KCC and our developer community on a solution that benefits our Korean users,” Apple had previously said in a statement about the law in South Korea. “Our work will always be guided by keeping the ‌App Store‌ a safe and trusted place for our users to download the apps they love,” the company added.

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