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Apple introduced its App Store Small Business Program, which halved Apple’s cut from developers earning less than a million dollars a year on its store. The Wall Street Journal notes that South Korea’s new legislation could end up being referenced by regulators in other countries.īoth Apple and Google have been trying to stave off such actions through changes to their store policies.
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Some in the US government have even proposed legislation similar to what was passed by South Korea. Russia requires that gadgets come pre-installed with apps made by Russian developers, and Australia is looking into regulating services like Apple Pay and Google Pay. South Korea isn’t the only country that’s trying to bend American tech giants to its will. Lobbyists for the two companies have reportedly argued to American officials that the Korean legislation violates a trade agreement, as it seeks to control the actions of US-based companies.
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We believe user trust in App Store purchases will decrease as a result of this proposal-leading to fewer opportunities for the over 482,000 registered developers in Korea who have earned more than KRW8.55 trillion to date with Apple. The proposed Telecommunications Business Act will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections, make it difficult to manage their purchases, and features like “Ask to Buy” and Parental Controls will become less effective. However, prior to the law’s passing, the company sent over the following statement.
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“We’ll reflect on how to comply with this law while maintaining a model that supports a high-quality operating system and app store, and we will share more in the coming weeks.”Ī representative from Apple did not immediately respond to a request for comment from The Verge. “Just as it costs developers money to build an app, it costs us money to build and maintain an operating system and app store,” a Google spokesperson said.
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In a statement, Google defended its service fees, which it says “helps keep Android free,” and gives developers “the tools and global platform to access billions of consumers around the world.”