There is now broad international consensus that in-app payment systems cause competition concerns
App stores as a bottleneck: Policymakers around the world are increasingly convinced that Apple and Google’s mobile ecosystems are a duopoly that needs to be regulated. Some (such as ARCEP in France) have been saying this for years. Recent initiatives to reform antitrust laws in the EU and the US are focused on reducing these companies' ability to favour their own services over those of competitors. Legal disputes such as that between Epic and both Apple and Google, as well as the antitrust case involving Apple and Spotify in the EU, have given policymakers the impetus to intervene. Just last week, on 16 August, a bill was introduced in the US to ensure app developers are not forced to use Apple and Google’s own payment systems.
South Korea is following suit: On 25 August, The Legislation and Judiciary Committee of the South Korean parliament approved an amendment to the country’s Telecommunications Business Act, which is being dubbed the “anti-Google law”. It’s designed to ensure app developers can use alternatives to Apple and Google’s payment systems, effectively stopping them from charging commissions on in-app purchases.
Apple and Google push back, but have taken steps to appease competition authorities: Apple has warned about the unintended consequences of interventions just like these. It has said that they will put consumers at higher risk of fraud and undermine their privacy protections, making it difficult to manage their purchases. Responding to this latest proposal, Apple argued that trust in App Store purchases will fall, leading to fewer opportunities for the nearly 500,000 registered developers in South Korea who have earned more than KRW8.55tn (£5.3bn) to date. While Google has not yet commented, it recently made its stance clear. Recognising that regulators aren’t going to back down, both companies acknowledged there is a problem to address. In late 2020, Apple announced it would cut app store commission from 30% to 15% for small developers. Google followed soon after for the first USD1m of a developer’s annual revenue.
Source: https://www.reuters.com/technology/skorea-set-curb-google-apple-commission-dominance-2021-08-24/
