From The Verge: Developers of apps released in Apple’s South Korean App Store no longer have to use the company’s own in-app payment system, the iPhone maker has announced in a developer update. Instead, developers will be able to take payments using the third-party service providers pre-approved by Apple.
The change comes in response to an amendment to South Korea’s Telecommunications Business Act passed last year, which prevents large platform holders like Apple and Google from forcing developers to use their first-party in-app payment systems. Both Apple and Google opposed the legislation, with Apple arguing that it would make it harder for its users to manage their purchases, undermine their privacy protections, and put them at risk of fraud.
Crucially, the law threatens the lucrative commission that Apple charges developers to use its in-app payments system. This so-called “Apple tax” is up to 30 percent of the price paid by the user, and has been the focus of many developer complaints over the years. But although South Korea is forcing Apple to allow developers to use alternative payment systems, Apple still intends to collect a commission of 26 percent for payments made through third-party systems. Its documentation notes that developers will be required to report all sales to Apple each month, and will then need to pay the commission.
To use third-party payment systems, interested developers will need to submit a form to Apple to request access to the “StoreKit External Purchase Entitlement,” which is only available to apps distributed exclusively in South Korea. If an app is available globally, developers will need to submit a separate app binary “that is distributed solely on the App Store in South Korea.”
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