South Korea is the first country to impose legislation on tech companies’ payment policies. The initial details of the policy are expected to be public on November 17, 2021. It was previously noted that Apple Inc and Google are not doing enough to comply with South Korean law. The law indicates that dominant App Store operators cannot force app developers to use their payment systems. As part of the policy, the South Korean government has made it clear that if Apple and Google fail to abide by the new policy, that is if both the App Store operators force the app developers to use their payment systems only, South Korea will find them.
If any such violation is found on the part of Google and Apple, South Korea will impose a fine of up to 2% of South Korean app market revenues on App Store operators. Furthermore, the dominant app market operator will also be fined up to 1% of South Korean app store revenue for delaying reviewing apps or deleting an app from the App Store. The new law and regulations imposed on tech companies’ payment policies will be implemented in March 2022. Moreover, the lawmakers also think that if the app developers find themselves at a disadvantage of having no choice but to use specific payment methods, the new law will find this to be forced, and will take necessary steps likewise.
South Korea had passed an amendment to the Telecom Business Law this year in August. The amendment prohibits App Store operators from forcing app developers to use their payment system, in that the app developers have some sort of freedom over choosing their method of payment. However, according to a South Korean congressman, Apple and Google are not doing everything to comply with this new regulation.