Apple, Google Mobile Dominance Faces Tough Test in South Korea

Bloomberg2021-08-30

(Bloomberg) -- South Korea is expected to become the first country to pass a law ending Apple and Google’s domination of payments on their mobile platforms, setting a potentially radical precedent for...

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精彩评论

vincentheng8
2021-08-31
vincentheng8
All in FAAMG!
Jason7890
2021-08-30
Jason7890
Nice
- k1wong:
  Indeed
Jennifer58
2021-08-30
Jennifer58
Yeah
- Investigater:
  Yeah
- Jennifer58:
  More competition better
Vilianty
2021-08-30
Vilianty
Ok
- Vilianty:
  ok
RS142
2021-08-30
RS142
More players which is good
- Andrewinho:
  👍👍👍
VivS
2021-08-30
VivS
More variety it seems
- Tj_:
  👍

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Both charge a fee of typically 30% on purchases made through their stores and exclude alternative payment handlers, arguing this protects users from fraud and privacy invasion.\nNow, Korea’s government is taking direct action to end that dominance. The Telecommunications Business Act would mandate giving users a free choice of app payment providers. The bill, which is almost certain to pass an assembly vote Monday given the ruling party’s super-majority, opens the door for companies like Fortnite maker Epic Games Inc. to transact directly with users and bypass the platform owner’s charges. Epic has taken the iOS and Android owners to court in various jurisdictions arguing their fees are unfair.\n“This could presage similar actions elsewhere,” said Omdia analyst Guillermo Escofet, who specializes in digital consumer platforms. “Regulators, lawmakers and litigators in North America and Europe are also scrutinizing app-store billing rules, and the overriding political mood has become hostile to the enormous amount of power concentrated in the hands of the tech giants.”\nKorean lawmakers are making their move ahead of plans by Google to introduce its 30% commission fee in October, reversing a years-long exemption for the country. Its announcement last year it would make its payment system mandatory for non-gaming apps is widely seen as the trigger for the new legislation -- dubbed locally the anti-Google law.\nThe controversy over commissions goes to the heart of how Apple and Google sustain a dominance that’s endured since the start of the global smartphone era over a decade ago. Apple settled a wide-ranging class-action lawsuit with U.S. app makers Thursday, but without agreeing to major changes to its policies.\nThe revenue streams in question are central to profit growth for both Apple and Google. The iPhone maker’s App Store feeds broader efforts to grow income from services and subscriptions, producing around $20 billion annually, according to Sensor Tower. Google’s Android is booming in user numbers as India’s population gets online with the help of mobile devices, and app fees are a key way the company monetizes its otherwise free software.\nThe ramifications extend beyond just the $142 billion world of apps. The confrontation strikes at the fundamental role played not only by Apple and Google but also Amazon.com Inc. and Facebook Inc. as the new gatekeepers of the digital economy. Over a decade, all four companies have built up vast online marketplaces on which their rivals do business.\nKorea remains one of the few arenas where local players such as Naver Corp. and Kakao Corp. hold sway, though they’re under threat: YouTube this year became the nation’s top video service, for instance, edging out Naver.\nLawmakers now echo their U.S. counterparts in saying the absence of competition exposes consumers and developers to the whims of the duo. In India, startup founders have been especially vocal about getting shut out.\n“The mood has changed over the past couple of years,” said Kim Dohyeon, business professor at Kookmin University and director at Korea’s Startup Alliance. “The in-app billing system creates a big barrier to entry for startups that are not generating profits.”\nDevelopers in the country have earned more than 8.55 trillion won ($7.3 billion) to date on the App Store, Apple said. Sales of mobile apps and content were around 7.5 trillion won last year and are projected to increase by 21% to 9.1 trillion won this year, according to the Korea Mobile Internet Business Association. Google handled about 67% of those through its Android operating system, Apple did 22% across its iPhones and iPads and the rest came via local operator SK Telecom Co.’s One Store.\nGoogle has described the legislative process in South Korea as rushed, while Apple has said the provisions will undermine parental controls, privacy and trust. It’s unclear how the White House will respond, given efforts back home to curb the sprawling influence of tech companies.\nApple and Google have been lobbying politicians to block its passage in South Korea, which is an American ally and trading partner. But some officials have sought to play down concerns.\n“Adjustments can be made in executing the policy,” Korea Communications Commission Chairman Han Sang-hyuk told reporters Thursday. “We are fully aware of the concerns of Apple and Google, so we will implement them in consideration of both industry stakeholders and users.”","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":811791521,"gmtCreate":1630343601863,"gmtModify":1704958867047,"author":{"id":"3577147024133490","authorId":"3577147024133490","name":"vincentheng8","avatar":"https://static.tigerbbs.com/177fda2264ab2bd83ccfc55eb70c57a4","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"All in FAAMG!","listText":"All in FAAMG!","text":"All in 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competition <u>better</u>","text":"More competition <u>better</u>","html":"More competition 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players which is good","listText":"More players which is good","text":"More players which is 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