South Korea’s parliamentary committee is voting to stop Google, the domain of Apple’s commission

SEOUL, Aug 25 (Reuters) – A South Korean parliamentary committee voted early Wednesday to recommend amending a law, a key step in banning Google and Apple from forcibly charging software developers commissions for purchases from the application, the first limit of this type economy.

Following the vote by the legislative and judicial committee to amend the Telecommunications Business Act, dubbed the “anti-Google law,” the amendment will move to a final vote in parliament.

That vote could come on Wednesday, although South Korean news agency Yonhap reported that parliament would act later. Read more

A parliamentary official told Reuters that the office had not yet received an official request not to hold the meeting on Wednesday.

Apple Inc. (AAPL.O) and Alphabet Google Inc. (GOOGL.O) have come under global criticism for requiring software developers who use their app stores to use proprietary payment systems that charge commissions of up to 30%.

In a statement issued Tuesday, Apple said the bill “will put users who buy digital products from other sources at risk of fraud, undermine their privacy protection,” hurting users’ confidence in their purchases. ‘App Store and will generate fewer opportunities for South Korean developers.

Wilson White, Google’s senior director of public policy, said that “the hasty process has failed to adequately analyze the negative impact of this legislation on Korean consumers and application developers.”

Legal experts said app store operators could work with developers and other companies to create different secure payment methods than they provide.

“Google and Apple aren’t the only ones who can create a secure payment system,” said Lee Hwang, a professor at the University of Korea Law School who specializes in competition law. “I think it’s a problem trying to inspire excessive fear by talking about security about the use of different payment methods.”

Based on South Korean parliament records, the amendment bans app store operators with dominant market positions from forcing payment providers to content providers and “inappropriately” delaying the review or deletion of mobile content. of application markets.

It also allows the South Korean government to require an app market operator to “prevent harm to users and protect the rights and interests of users,” to probe app market operators, and to meditate on payment disputes. , cancellations or refunds in the application market.

This month in the United States, a bipartisan group of senators introduced a bill that would restrict app stores from companies they say have too much market control, including Apple and Google. Read more

Reports by Heekyong Yang and Joyce Lee. Edited by Gerry Doyle

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