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Elaine Allan

South Korea – Ending Google and Apple Dominance

Posted on August 30, 2021August 30, 2021

South Korea vs Big Tech

A South Korean Parliamentary Committee will vote today to approve legislation put forth that would ban Google and Apple from charging software developers commissions for in-app purchases.  Typically, app developers hope to earn revenue from the apps they create when users choose to upgrade to the app’s paid version that carries more features.

South Korea’s Anti-Google Law

If South Korean Parliament votes the proposed legislation into law today, it will have effectively amended its Telecommunications Business Act, referred to as the “Anti-Google Law”.  This amendment has the ability to influence other jurisdictions around the world into enacting similar laws.

Apple and Google’s Commission Strategy

Apple Inc and Alphabet Inc’s Google have both faced global criticism because they require software developers using their app stores to use proprietary payment systems that charge commissions of up to 30% for the app upgrades that get purchased on their platforms.

Limiting the Power of Big Tech

Google and Apple are two “big tech” firms that currently enjoy no limitations to monetize app upsells on their platforms.  South Korean politicians believe they need to create laws and regulatory compliance
legislation that regulates the amount of profit these tech giants can make off of their country’s app developers.  The US also has nonpartisan committees working to draft similar bills that if passed, will erode the dominance of Big Tech in America.

Elaine Allan, BA, MBA

Technology & Business Blogger

Vancouver, BC, Canada

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