South Korea Finds Apple’s Compliance Plan for Third-Party in-App Payments Lacking ‘Concrete Detail’

The Korean Communications Commission (KCC) in South Korea says Apple’s plan to let developers use third-party payment solutions in their apps “lacks concrete detail.”

To recall, the Korean government passed an amendment to its Telecommunication Business Act in August, banning App Store operators like Google and Apple from forcing app developers to use their billing systems. Apple subsequently criticized the ruling and submitted a plan outlining how it would comply with the legislation. The plan explained that the iPhone maker would earn a commission for every purchase made, even if a third-party billing system is used.

Reuters reports that the KCC believes Apple’s compliance plan “lacks concrete detail.” Specifically, the government body is displeased that Apple and Google intend to continue charging a commission from app developers, irrespective of the payment system used. It argues that this would tempt developers to stick with Apple’s default payment gateway and process.

It reasons that if app developers find it “realistically difficult” to use a third-party payment system of their choice, they will choose to continue using Apple’s payment system, defeating the purpose of the ruling. According to an official, the final order is slated to be drawn up by March 15 and will reflect the KCC’s stance on the matter.

In related news, The Netherlands will soon allow dating app developers to use alternative payment methods. However, Apple’s compliance plan for this ruling was criticized for its inadequacies and subsequently attracted a 5 million euro fine for every week Apple delays its compliance. The maximum fine the country can levy is 50 million euros.

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