South Korea has approved rules that will break Apple and Google’s app store dominance in the country, the Asian nation’s telecommunications regulator said on Tuesday.
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The rules will stop the two firms from making developers use their payments systems. The law, an amendment to South Korea’s Telecommunication Business Act, is a first from a major economy against the two tech giants.
The duo has been facing global criticism for requiring the use of proprietary payment systems that charge commissions of up to 30%.
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The rules, called the enforcement ordinance, will take effect from March 15. They specify that the law bars “the act of forcing a specific payment method to a provider of mobile content” by unfairly utilising the app market operator’s status, the regulator Korea Communications Commission (KCC) said in a statement.
“In order to prevent indirect regulatory avoidance, prohibited acts’ types and standards have been established as tightly-knit as possible within the scope delegated by the law,” said KCC Chairman Han Sang-hyuk, according to a report by Reuters.
Barred acts include app market operators unfairly delaying the review of mobile content, or refusing, delaying, restricting, deleting, or blocking the registration, renewal, or inspection of mobile content that uses third-party payment methods.
Potential fines for infractions will go as high as 2% of an average annual revenue from related business practices, the rules said.
(with inputs from Agencies)