Korean lawmaker says Apple and Google need to do more to comply with new law

Lawmaker says that Apple and Google are not complying with a law banning them from forcing developers to use their payment platforms

Korean lawmaker Jo Seoung-lae is the person who directed an amendment to the Telecommunication Business Act in August in an attempt to prevent Apple and Google from taking a cut of in-app payments. While the law went into effect in September, the Korea Communications Commission (KCC) still has to announce what tech firms have to do to be considered in compliance with the law.

Jo, the South Korean lawmaker who helped get the legislation passed, said, “Frankly, we are not satisfied… Apple’s claim that it’s already complying is nonsensical. Excessive fees take away developers’ chances for innovation … parliament is to be closely informed as the government drafts detailed regulations to make sure there is accountability.”

But Sweeney won’t be pleased just being able to promote third-party payment platforms in the App Store and Google Play Store. He wants Apple and Google blocked from charging any fees to developers promoting third-party payment platforms. This is what Google is doing in South Korea and “ruins the point of competition,” the CEO says.

The KCC is preparing the details of an ordinance that will be reported to a parliamentary committee tomorrow according to KCC Vice-Chairman Kim Hyun. At this stage though, it is not clear what penalties tech firms like Apple and Google will face if they do not follow the law. An early draft seen by Reuters called for a penalty of up to “2% of revenue” for app store operators who fail to abide by the law.

That is the point of Meghan DiMuzio, executive director of advisory group Coalition for App Fairness who says, “We’ve seen in other jurisdictions that these monetary penalties actually don’t deter companies like Apple and Google because to them, it’s a drop in the bucket.”