South Korean telecom authority has successfully forced Apple to let their local developers use third-party payment options in Appstore.
This comes after a warning from the South Korean Communications Commission, that it shall ban Apple from the country if it forces developers to use its native in-app payment system, where the company takes a 30% cut per transaction.
Apple Surrendered to Korea
The fight between Apple and app developers over the hefty Appstore charges is heating up. Governments, where Apple is pulled into lawsuits, are siding with developers, and are directing that Apple should lead developers to use their desired means of payment in the Appstore.
The latest government to support this stance is South Korea, where its telecom authority – the Korea Communications Commission has dictated that Apple should allow its local developers to set in third-party payment options in their apps. And Apple partially agreed to this!
As we thought developers can finally evade the Appstore tax of 30%, Apple said it will charge a commission from the third-party payment means too, from the developers, but at a reduced rate. This is revealed to The Korean Herald, where the company said,
“Apple has a great deal of respect for Korea’s laws and a strong history of collaboration with the country’s talented app developers. 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.”
How much the reduced rate could be or when this will start isn’t known yet. Google, on the other hand, is also warned by KCC with similar ban actions if failed to comply. And the Search giant is drafting a plan similar to Apple’s too. Google in November announced that it will allow Korean developers to set their own payment options in the apps, but will still collect a reduced fee – 11% (down from 15%) from third-party transactions.
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