They've only gone and done it – South Korea forces Apple, Google to allow alternative app store payment systems

Big Tech warns favoring SK players won't go down well – yet South Korea loves its software


South Korea's parliament has passed a law that requires Apple and Google to offer third-party payment options in their app stores.

The Partial amendment to the Telecommunications Business Act passed through the National Assembly on Tuesday. It now awaits the formality of presidential assent before passing into law.

As we've previously reported, the law prevents tech giants with dominant market positions from restricting payment options in their software, either to pay for apps or for in-app purchases.

As such, it is aimed squarely at Google and Apple.

The latter warned the law will expose its customers to fraud, as alternative payment providers may not offer the same level of supervision that Apple offers. Google insisted the fees it collects from its Play store help fund the ongoing development of Android.

The Asia Internet Coalition, Big Tech's regional lobby group, issued a statement [PDF] that labeled the new law "disheartening" and warned it "may contravene the country's international trade commitments."

That remark is code for pointing out that trade agreements may give the USA grounds to move against South Korea for making life hard for American companies.

"These expressly discriminatory amendments tilt the playing field in favour of Korean domestic app markets and will ultimately hurt Korean app developers and end-users that value the services provided in the current Korean mobile app ecosystem," the coalition adds.

The statement doesn't acknowledge that South Korea is one of the few nations in which Google and pals don't enjoy utter market dominance. Naver, a search engine and portal, has more than 50 per cent market share. Hancon, a vendor of personal productivity software, has managed to keep Microsoft Office's market share below 80 per cent.

The nation's government uses Hancon's file format for documents downloadable from its web sites – a demonstration of pride in local tech companies and their success keeping tech giants at bay.

App makers have mostly been quiet about the law. Epic Games, which has fought against payments monopolies of both Apple and Google, is silent on the decision at the time of writing. The Match Group, purveyor of dating app Tinder, has welcomed the law as a welcome correction of the app market.

Reaction is otherwise muted. No other nation has comparable laws in the legislative pipeline, although Google and Apple face investigations into their market power in Australia, the EU, and America. ®


Other stories you might like

  • Hangouts hangs up: Google chat app shuts this year
    How many messaging services does this web giant need? It's gotta be over 9,000

    Google is winding down its messaging app Hangouts before it officially shuts in November, the web giant announced on Monday.

    Users of the mobile app will see a pop-up asking them to move their conversations onto Google Chat, which is yet another one of its online services. It can be accessed via Gmail as well as its own standalone application. Next month, conversations in the web version of Hangouts will be ported over to Chat in Gmail. 

    Continue reading
  • It's a crime to use Google Analytics, watchdog tells Italian website
    Because data flows into the United States, not because of that user interface

    Updated Another kicking has been leveled at American tech giants by EU regulators as Italy's data protection authority ruled against transfers of data to the US using Google Analytics.

    The ruling by the Garante was made yesterday as regulators took a close look at a website operator who was using Google Analytics. The regulators found that the site collected all manner of information.

    So far, so normal. Google Analytics is commonly used by websites to analyze traffic. Others exist, but Google's is very much the big beast. It also performs its analysis in the USA, which is what EU regulators have taken exception to. The place is, after all, "a country without an adequate level of data protection," according to the regulator.

    Continue reading
  • Workers win vote to form first-ever US Apple Store union
    Results set to be ratified by labor board by end of the week

    Workers at an Apple Store in Towson, Maryland have voted to form a union, making them the first of the iGiant's retail staff to do so in the United States.

    Out of 110 eligible voters, 65 employees voted in support of unionization versus 33 who voted against it. The organizing committee, known as the Coalition of Organized Retail Employees (CORE), has now filed to certify the results with America's National Labor Relations Board. Members joining this first-ever US Apple Store union will be represented by the International Association of Machinists and Aerospace Workers (IAM).

    "I applaud the courage displayed by CORE members at the Apple store in Towson for achieving this historic victory," IAM's international president Robert Martinez Jr said in a statement on Saturday. "They made a huge sacrifice for thousands of Apple employees across the nation who had all eyes on this election."

    Continue reading
  • End of the road for biz living off free G Suite legacy edition
    Firms accustomed to freebies miffed that web giant's largess doesn't last

    After offering free G Suite apps for more than a decade, Google next week plans to discontinue its legacy service – which hasn't been offered to new customers since 2012 – and force business users to transition to a paid subscription for the service's successor, Google Workspace.

    "For businesses, the G Suite legacy free edition will no longer be available after June 27, 2022," Google explains in its support document. "Your account will be automatically transitioned to a paid Google Workspace subscription where we continue to deliver new capabilities to help businesses transform the way they work."

    Small business owners who have relied on the G Suite legacy free edition aren't thrilled that they will have to pay for Workspace or migrate to a rival like Microsoft, which happens to be actively encouraging defectors. As noted by The New York Times on Monday, the approaching deadline has elicited complaints from small firms that bet on Google's cloud productivity apps in the 2006-2012 period and have enjoyed the lack of billing since then.

    Continue reading
  • I was fired for blowing the whistle on cult's status in Google unit, says contractor
    The internet giant, a doomsday religious sect, and a lawsuit in Silicon Valley

    A former Google video producer has sued the internet giant alleging he was unfairly fired for blowing the whistle on a religious sect that had all but taken over his business unit. 

    The lawsuit demands a jury trial and financial restitution for "religious discrimination, wrongful termination, retaliation and related causes of action." It alleges Peter Lubbers, director of the Google Developer Studio (GDS) film group in which 34-year-old plaintiff Kevin Lloyd worked, is not only a member of The Fellowship of Friends, the exec was influential in growing the studio into a team that, in essence, funneled money back to the fellowship.

    In his complaint [PDF], filed in a California Superior Court in Silicon Valley, Lloyd lays down a case that he was fired for expressing concerns over the fellowship's influence at Google, specifically in the GDS. When these concerns were reported to a manager, Lloyd was told to drop the issue or risk losing his job, it is claimed. 

    Continue reading
  • Google has more reasons why it doesn't like antitrust law that affects Google
    It'll ruin Gmail, claims web ads giant

    Google has a fresh list of reasons why it opposes tech antitrust legislation making its way through Congress but, like others who've expressed discontent, the ad giant's complaints leave out mention of portions of the proposed law that address said gripes.

    The law bill in question is S.2992, the Senate version of the American Innovation and Choice Online Act (AICOA), which is closer than ever to getting votes in the House and Senate, which could see it advanced to President Biden's desk.

    AICOA prohibits tech companies above a certain size from favoring their own products and services over their competitors. It applies to businesses considered "critical trading partners," meaning the company controls access to a platform through which business users reach their customers. Google, Apple, Amazon, and Meta in one way or another seemingly fall under the scope of this US legislation. 

    Continue reading
  • Google: How we tackled this iPhone, Android spyware
    Watching people's every move and collecting their info – not on our watch, says web ads giant

    Spyware developed by Italian firm RCS Labs was used to target cellphones in Italy and Kazakhstan — in some cases with an assist from the victims' cellular network providers, according to Google's Threat Analysis Group (TAG).

    RCS Labs customers include law-enforcement agencies worldwide, according to the vendor's website. It's one of more than 30 outfits Google researchers are tracking that sell exploits or surveillance capabilities to government-backed groups. And we're told this particular spyware runs on both iOS and Android phones.

    We understand this particular campaign of espionage involving RCS's spyware was documented last week by Lookout, which dubbed the toolkit "Hermit." We're told it is potentially capable of spying on the victims' chat apps, camera and microphone, contacts book and calendars, browser, and clipboard, and beam that info back to base. It's said that Italian authorities have used this tool in tackling corruption cases, and the Kazakh government has had its hands on it, too.

    Continue reading

Biting the hand that feeds IT © 1998–2022