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South Korean authorities to pass a bill that may save developers from Apple and Google’s commission Fees

Apple has been labelled as a monopolist in the mobile and tech world for a long time now and while a major reason for it is the company’s ability to restrict its users to their own devices, another reason has got to be its ability to control all the developers present on App Store.

Google has been added on the App Store monopoly list as well.

The two companies have long been charging all developers on the Apple and Google Store with a 30 percent commission fee and also restricts any application to take out of app payments from users, and any application on the store which tries to break these rules are removed from both the stores.

Small developers probably don’t like these policies but they can’t do anything about it considering how these two are the leading stores for applications and have access to a whole lot of users, which eventually is beneficial for the developers and their applications.

However, looks like this problem for the developers in South Korea will soon be solved if things work out in favor of the South Korean Telecommunication Business Act. Why is that?

The new ruling act will make all App stores to let users make out of app payments for all applications that are owned by Korean developers, through this the Apple and Google’s 30 percent fee will also be bypassed.

Many people believe that Apple and Google take wrong use of the power they hold within the tech world and charging a 30 percent commission is absurd. Google last year made a good 11.2 billion revenues and 8.5 billion dollars in gross profit, and Apple makes even more money than this, so not letting developers charge outside of applications is extremely wrong.

Apart from just Korea, other countries are also working towards forming such rules, however the Korean Telecommunication Application will be the first one to kick the bucket if all goes well for them.

However, the Biden government stands with Apple currently and is against the Korean Act.

According to Adam Hodge who is US Trade Representative spokesman, this is more than just an act against Apple but a mere threat to all American companies and the growing competition in the world and hence the government is standing against this.

However, Korea Communications Commission Chairman Han Sang-hyuk has assured the US government, Apple and Google, that the policy will be passed only after adjustments are made and both Apple and Google’s concerns will be kept under consideration before the bill is passed so the two companies do not need to worry.

The bill would be passed after a series of votes and once approved will be signed by the President Moon Jae-in.


H/T: Bloomberg.

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