# S.Korea parliament committee votes to curb Google, Apple commission dominance
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-25
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: South Korea Moves to Curb Google and Apple Commissions
Meta Description: Learn about South Korea's groundbreaking move to curb tech giants' dominance and protect developers from high commissions. Stay updated with the
URL: https://financedigest.com/s-korea-parliament-committee-votes-to-curb-google-apple-commission-dominancehtml

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SEOUL (Reuters) – A South Korean parliamentary committee voted early on Wednesday to recommend amending a law, a key step toward banning Google and Apple from forcibly charging software developers commissions on in-app purchases, the first such curb by a major economy.

After the vote from the legislation and judiciary committee to amend the Telecommunications Business Act, dubbed the “Anti-Google law,” the amendment will come to a final vote in parliament.

That vote could come on Wednesday https://www.reuters.com/technology/skorea-set-curb-google-apple-commission-dominance-2021-08-24, although South Korean news agency Yonhap reported that parliament would act at a later date.

A parliament official told [Reuters the office had not yet received an official request not to hold the meeting](https://www.financedigest.com/thomson-reuters-announces-suite-of-reference-data-capabilities-to-help-financial-industry-meet-mifid-ii-transparency-and-reporting-requirements.html "Thomson Reuters Announces Suite of Reference Data Capabilities to Help Financial Industry Meet MiFID II Transparency and Reporting Requirements") on Wednesday.

[Apple Inc and Alphabet Inc’s Google](https://www.financedigest.com/30-per-cent-of-uk-consumers-would-use-amazon-google-facebook-or-apple-for-banking-services.html "30 Per Cent of UK Consumers Would Use Amazon, Google, Facebook or Apple for Banking Services") have both faced global criticism because they require software developers using their app stores to use proprietary payment systems that charge commissions of up to 30%.

In a statement on Tuesday, Apple said the bill “will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections”, hurt user trust in App [Store purchases and lead to fewer opportunities for South Korean developers](https://www.financedigest.com/the-benefits-of-developing-online-stores-through-shopify.html "The Benefits of Developing Online Stores Through Shopify").

Wilson White, senior director of public policy at Google, said “the rushed process hasn’t allowed for enough analysis of the negative impact of this legislation on Korean consumers and app developers.

Based on South Korean parliament records, the amendment bans app [store operators](https://www.financedigest.com/ikea-stores-owner-ingkas-annual-operating-profit-rises-9.html "IKEA stores owner Ingka’s annual operating profit rises 9%") with dominant market positions from forcing payment systems on content providers and “inappropriately” delaying the review of, or deleting, mobile contents from app markets.

It also allows the South Korean government to require an app [market operator to “prevent damage to users and protect](https://www.financedigest.com/the-hearing-protection-devices-market-to-project-invigoration.html "The Hearing Protection Devices Market To Project Invigoration") the rights and interests of users”, probe app market operators, and mediate disputes regarding payment, cancellations or refunds in the app market.

This month in the United States, a bipartisan group of senators introduced a bill that would rein in [app stores](https://www.financedigest.com/apple-given-fourth-dutch-fine-in-app-store-dispute.html "Apple given fourth Dutch fine in App Store dispute") of companies that they said exert too much market control, including Apple and Google.

(Reporting by Heekyong Yang and Joyce Lee. Editing by Gerry Doyle)


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