Apple to accept outside payment in app store in compliance with Korean law

Apple Inc. is accepting outside payment means in Korea on its app store for the first time globally in compliance with a new law in Korea.

Apple on Friday last week outlined its plan to allow the use of third-party payment platforms in Korea, according to the Korea Communications Commission (KCC) on Tuesday. Service fees for other payment options will also be cut from the current 30 percent to better support the policy revision.

The U.S. tech giant plans to discuss further details about the timing of the new billing and few cut. The KCC will relay the worries of the industry in the discussions.

The announcement came after the KCC demanded remedial actions from Apple in sync with the Korean law enacted in August that bans major app stores operated by multinationals like Google and Apple from forcing software developers to use their payment systems.

Under the new law, Apple CEO Tim Cook can face criminal charge in Korea if the company refuses to comply with the remedial order.

Google in December decided to give additional payment options to Korean app developers with services fees lowered by 4 percentage points to 11 percent. Apple remained negative about the new law but yielded to adjust its policy in close cooperation with the KCC.

“It is significant that Apple also decided changes in their in-app billing policy. Other governments are watching closely the multinational big techs’ response to the first specific action in Korea to contain their abuses,” said a government official.

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