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South Korea will legislate to ban AppStore/Google Play from taking commissions

Article source:HERIZ ELECTRONICS CO., LTD. Popularity:119issuing time:2021-08-30 15:03:37

                             South Korea will legislate to ban AppStore/Google Play from taking commissions
According to reports, the Legislative and Judiciary Committee of the South Korean National Assembly is expected to approve an amendment to the telecommunications commerce law known as the "anti-Google law" that would prohibit app store operators such as Google and Apple from using their monopoly position to take commissions from revenues from in-app purchases in development. This would be the first time a major economy has adopted such restrictions, and may be the first of its kind in the world.


In response, Apple said that the proposal would lead to a decrease in trust for users purchasing goods from the App Store, exposing those who purchase digital goods from other sources to the risk of fraud and undermining their privacy protections, making it difficult for them to manage their purchases. And the proposal, if passed, would reduce opportunities for the more than 482,000 registered developers in South Korea, whose work with Apple has generated more than 8.55 trillion won in revenue so far, which Google has yet to comment on. In fact, the issue of the tech giant's commission structure drew widespread attention from Korean lawmakers as early as the middle of last year, and measures are being tightened around the world in addition to Korea. Last year, the European union proposed the Digital Marketplace Act to address the issue of commission structures in app stores, and this month, three U.S. senators from both parties introduced a bill aimed at restricting app store operators who are perceived to control the market, targeting Apple and Google.


In September 2020, Google announced that it would implement its billing system for all app developers, charging up to 30% commission on all in-app purchases, and Apple's commission structure is similar. The most controversial of the commission structures is the one that charges up to 30% commission on all in-app purchases. The reason is that the store operator only provides a software service platform, but for all in-app purchases to commission 30%, which means that if you are a game developer, users download paid software, you have to share 30% to the store operator, users in the game to recharge, purchase props, bounties and other virtual goods that need to go inside the purchase, but also a 30% commission, a 30% commission, for developers In March 2019, Spotify complained to the European union that Apple required it to pay for in-app purchases and had to pay Apple a 30% commission draw; in early August last year, Epic Games, the developer of "Fortnite," was forced to pay a 30% commission draw for not being willing to pay the high commission. In early August last year, Epic Games, the developer of "Fortnite", did not want to pay the high commission and sold the game directly to users, which violated the App Store's payment rules and led to the game being taken down from the App Store by Apple. In response, Epic Games directly sued Apple, blatantly stating that the "Apple Tax" is totally unreasonable, and that Apple abuses its dominant market position in iOS by charging application developers a mandatory 30% commission, and that Epic has paid $100 million in commissions to Apple in two years ...... It can be said that application developers have been suffering from the draw for a long time.
             In fact, not only the application developers, many Apple users are also quite dissatisfied with this. As the saying goes, the wool comes off the sheep's back, and while the developers have reduced some of their revenue due to the commission, the users are the ones who really pay for it. But in fact, Apple prohibits Android and Apple users to buy the same thing but the price is not consistent with this model, because it is undoubtedly leading users to charge money to the Android platform. So to sum up, Apple is definitely going to pump 30%, but the application developers can't price the two sides differently, or they will all be taken off the shelves. So all said and done, does the Android app store not take a percentage? That is not, even on the contrary is the Android store operators draw a higher percentage, often in 20%-60%, the specific proportion depends on the category and brand. NetEase CEO Ding Lei has publicly "bombarded" the domestic application store game percentage as high as 50%, about 20% higher than Apple, which is extremely unfavorable for the current industry sharing ecology. So whether Android or Apple, the application commission is the same, but the ratio is different. And Android users and Apple users in this model, both pay higher prices to buy the same application, because at least the application developers will not let the wool only out of their own body. Since the Android and Apple app store prices are required to be consistent, the prices are adjusted upwards to the so-called "consistent".
             But it must be said that Apple and Google do provide developers with development tools, technical documentation and other support, and their app stores allow developers to distribute their apps in stores around the world, providing professional after-sales customer service, first-class service levels and distribution platforms. But in the face of the increasingly sharp contradictions between application developers and store operators, perhaps adjusting and negotiating a profit model that is suitable for each other will allow both sides to go farther down the road of cooperation.




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