Apple allows in-app payment through multiple payment systems in Korea

Following Google, Apple has announced that it will allow third party app payment in its app store in Korea in accordance with a law banning app store operators from forcing cerktain payment methods. However, people in the industry complain that the decision is of no use in that Apple has decided to charge a fee even when app developers use third-party payment options.

The Korea Communications Commission (KCC) said on Tuesday that Apple submitted its plans to allow third-party payment in its app store in Korea

Apple decided to charge a fee to app developers for using an outside payment system. The tech company, however, said the fee will be lower than the current in-app payment fee of 30 percent. The KCC and Apple will further discuss on the specific method, timing, and fee rate for third-party payment. “We will be presented concrete plans by March before the enforcement ordinance of the law banning app store operators from forcing certain payment methods goes into effect,” an official from the KCC said.

Until October of last year, In its plans submitted to the KCC, Apple said it would not change its in-app payment system. At that time, Apple said the current payment policies and rules are in line with the amendments to the law and it does not force app developers to implement in-app purchases. It argued that the company did not violate the law as it provided a separate payment page outside its app. 　

In response, the KCC pointed out that such practice is against the law. Also, its competitor Google decided to allow other payment systems on their app markets, affecting Apple to change its policy regarding in-app payment. 　

Google and Apple decided to allow third-party app payment, but the domestic IT industry points out that there would be no real benefits. Google faced a backlash in November last year, when it said it would lower service fees by a mere 4 percentage points because there was not much difference from choosing in-app payment. 　

“Charging a fee for using an outside payment system is against the purpose of the law and it would be of not much help to app developers,” said an official from a large IT company.


warum@donga.com