Apple surrenders in Korea, announces support for 3rd party payment methods in iOS

Apple says that for the first time in history, the company will support 3rd-party payment methods in iOS in South Korea. This unexpected move is said to be Apple’s surrender, after South Korea enacted antitrust laws related to Apple’s App Store and Google’s Play Store.

Previously, all payments made through the iOS app and app store were exclusively owned by Apple, and charged a 30% commission. This exclusivity and commission fees have sparked a battle between the developers and Apple, especially the legal battle of Epic Games.

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After Epic Games’ lawsuit, a US judge ordered Apple to allow 3rd party payment methods in the App Store. However, the order was later suspended due to Apple’s appeal.

In South Korea, lawmakers have been much tougher and supportive of app developers, thereby enacting a new law that applies to both the App Store and Play Store.

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Despite surrendering and complying with the new law, Apple said it will still charge a commission for transactions through a third-party payment method. However, the developers let that it is not fair for Apple to charge any fees. Meanwhile, Apple and even Google consider that charging is necessary to build and maintain their platforms.

Apple has yet to say how much commission it will charge for third-party payments in the South Korean market. Apple also hasn’t said when support will be official or how these payment methods will work. The exact details are yet to be announced.

In its press statement, Apple said: “Apple respects the laws of Korea and wants to work closely with app developers in the country. We will always keep the App Store a safe and trusted place for all users. We look forward to continuing to work with legislators and developers, to find a common solution that benefits users in Korea.”

Reference: theverge

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