For a long time, Apple and Google have been criticised for their app store fees.
The US, the EU, and the UK are all looking into whether Apple and Google are breaking antitrust rules, but South Korea is the first to act decisively.
Moon Jae-in, the country’s president, and his party approved a law yesterday that would exclude Korean developers from fees charged by the App Store and Google Play Store, as well as in-app transaction costs.
Usually, they are 30%, however both businesses have reduced this to 15% for small developers. Despite this, mobile app revenue in 2020 was $111 billion, with a large chunk of that going to Google and Apple.
Obviously, the two American companies are dissatisfied with the new legislation.
According to Apple, this creates a risk to consumers since the legislation weakens privacy, payment security, and purchase management will become much more difficult, and parental control concerns may develop.
On the other hand, Google justified the fees by citing lower device costs and the financial stability of both sides (Google and the developers).