South Korea’s National Assembly passed a bill today challenging Apple and Google’s current app store policies, with implications potentially impacting both companies on a global scale.
As spotted first by The Wall Street Journal, the law is an amendment to South Korea’s Telecommunications Business Act. The new piece of legislation prevents major platforms like Apple and Google from banning app developers from using built-in payment systems, meaning app developers have the freedom to use their own payment systems.
The new law also forbids store owners from reprimanding developers that use alternative payment systems than the ones available on their app storefront. Failure to comply with the new law will result in fines of up to 3% of a mobile app store owner’s revenue in the country.
While this legislation only impacts South Korea, the legislation could have a massive impact on the tech giants across the globe. Both tech giants have been subject to criticism for their app store policies, with countries looking to crack down on both. Earlier this month, the US Senate introduced the Open App Markets Act, which would also developers to use their own payment systems if passed and sign into law.
Apple and Google have also been subjected to various lawsuits here in the United States. Last year, Fortnite developer Epic Games filed a lawsuit that challenged the app store policies. The case Epic Games v. Apple was argued last May, with a federal judge currently reviewing the case with a ruling anticipated to come before the end of the year.
Recently, Apple settled a completely different class-action lawsuit with US app developers, but the trade-offs have been minimal on Apple’s end and is pending approval from the court. At the same time, Google is currently being sued by 36 states plus the District of Columbia for its app store model.
Taylor is the Associate Tech Editor at IGN. You can follow her on Twitter @TayNixster.