Apple and Google call on the White House to oppose a South Korean bill, set to face a vote this week, that would mandate multiple payment systems for IAPs
A proposal in the South Korean legislature is an early test of how forcefully the Biden administration will defend the companies abroad while trying to trim their power at home.
New York Times
Context & Ripple Effects
The companies’ White House appeal landed as US lawmakers were pursuing bipartisan app-store legislation, making South Korea an early overseas pressure point in the same fight over who controls in-app transactions. The subsequent passage of South Korea’s alternative-payment law turned that pressure point into an operating constraint for both companies.
The dispute also foreshadowed a broader policy shift: the White House’s NTIA later characterized Apple and Google as mobile-app-store gatekeepers, while South Korea’s regulator moved to examine compliance by Apple, Google, and One Store.
First-order effects
Apple and Google must seek US diplomatic support while preparing for a South Korean regime that requires alternative in-app payment systems.
The White House is pressed to reconcile the companies’ request for support abroad with domestic efforts to curb app-store control.
Second-order effects
South Korea’s enforcement focus extends the compliance burden beyond Apple and Google to One Store, putting payment-rule implementation rather than legislation alone at the center of competition.
If enforcement holds, app-store operators’ control over payments becomes a more contestable part of platform governance, with national rules setting distinct conditions for access to mobile users.
The episode points toward governments treating app-store payment rules as a competition-policy issue even when platforms seek support from their home governments.
The trend: App-store regulation is moving from scrutiny of platform gatekeepers to enforceable limits on mandatory in-app payment systems across national markets.
Apple & Google have asked the Biden administration to stop South Korea from passing a law that would ban App Stores from requiring in-app purchases use their payment systems and give them a 30% cut. Awkward since U.S. is debating a similar law in Congress https://www.nytimes.com/…
That said, if the Biden administration does step in to pressure South Korea to stop them from regulating Apple & Google's App Stores then we should assume this U.S. legislation is dead as well. https://www.cnbc.com/...
Useful piece on a battle in South Korea over Google and Apple app stores. The State Dept is advocating on behalf of American tech monopolists, but US Trade Rep @AmbassadorTai is not. https://www.nytimes.com/...
New w/ @jin_charli... Google and Apple are fighting regulations in South Korea. They wanted help from DC. That tests the Biden administration: Will it defend tech companies facing antitrust scrutiny abroad while it applies that same scrutiny at home? https://www.nytimes.com/...
“The South Korean legislation would be the first law in the world to require companies that operate app stores to let users in Korea pay for in-app purchases using a variety of payment systems.”👀 “[It's] expected to face a crucial vote this week.” https://www.nytimes.com/...
“You don't want to be calling out a country for potentially violating an obligation when at the same time your own government is questioning the practice. It weakens the case substantially.” https://www.nytimes.com/...
The judiciary committee of the South Korean National Assembly is expected to vote as soon as tomorrow on the regulations. Then it needs a vote of the full assembly and a presidential signature to become law.
“...the first law in the world to require companies that operate app stores to let users in Korea pay for in-app purchases using a variety of payment systems. It would also prohibit blocking developers from listing their products on other app stores.” https://www.nytimes.com/...
It's insane the lengths Apple and Google will go to in order to maintain App Store restrictions... and I bet it's just a a coincidence that South Korea happens to be one of the worlds biggest Mobile Gaming markets. https://twitter.com/...
The South Korean legislation would be the 1st law in the world to require cos that operate app stores to let users in Korea pay for in-app purchases using a variety of payment systems. It would also prohibit blocking developers from listing their products on other app stores http…