App stores are one of the most important sources of income for Apple and Google. This is because they get a large percentage of paid app sales, along with in-app payments.
This percentage often reaches 30%, which negatively affects developers. Epic Games largely objected to this percentage, when it added the direct credit card payment feature in the game Fortnite.
Apple deleted the game right after that. Google did the same, and then Epic Games started suing Apple. The problems still persist.
Read also: The war between Fortnite and Apple is gradually escalating
Apple and Google monopoly on the App Store
This problem caused public opinion to be directed to the issue of the monopoly of the application stores on the one hand, and the monopoly of payment methods on the other hand.
This is as Apple prevents the existence of any alternative app stores for the App Store, and Google on the other hand has started developing the new AAB application format, which will make the applications highly dependent on the Play Store.
Objections appeared in all countries of the world, as developers in the United States of America began to raise suits jurisdiction, and Australia has begun to take some steps to reduce this monopoly.
On the other hand, some countries in Asia and the Pacific have also begun to direct attacks on Google, specifically South Korea, which began with a law that prevents Apple and Google from relying on their payment methods exclusively for payments on the store and within applications and games.
Read also: Everything you need to know about the new AAB format for Android apps
South Korea and Australia
South Korean lawmakers have begun debating a telecommunications business law, which could ban app stores when they rely on certain payment methods, negatively impacting competition. Violating the law will cost companies 3% of their annual turnover, and a fine of up to $275,000.
This law was supposed to enter parliament on Monday, but it was suddenly postponed.
If this law is approved, the application developer will be able to choose the appropriate payment method for him and include it within the application, without the need to rely on Google and Apple payment methods.
South Korea is not the only country to initiate such measures, as the Australian Treasurer, Josh Frydenberg, has also begun to advocate for new laws and legislation for electronic payments.
Read also: Microsoft plans to oust Google and Facebook in Europe
Apple is generally surrounded by anger and criticism from application developers and other companies that are negatively affected by its monopoly on a large number of platforms and services, and Google as well, and perhaps the steps taken by South Korea and Australia will push other countries to pay attention to this global problem, and perhaps the beginning will be with the countries of Europe.
Google has also achieved in the Korean market amounted to 5.2 billion US dollars. And Apple achieved up to 2 billion US dollars in the same market, in 2019, and certainly these numbers have increased in 2020 due to the US ban.
Therefore, US companies are expected to be subject to such legislation. However, this often won’t happen easily. It also states that South Korea has more than 482,000 app developers registered with Apple.