(LibertySociety.com) – Millions of developers every year create apps for mobile devices that bring convenience, fun, and help to countless users online. Most people don’t realize Google and Apple force these creators to use their billing systems and charge a fee of up to 30% for each transaction within their app.
But on August 31, South Korea became the first to approve a bill to end the monopoly, allowing app developers to offer users different payment methods having nothing to do with the tech giants.
In a global first, Google and Apple will have to open their app stores to alternative payment systems in South Korea, threatening their commissions https://t.co/ySAs1JSHdq
— The Wall Street Journal (@WSJ) August 31, 2021
While this might seem like a fair idea on the surface, Google and Apple insist the commissions are there to protect users against fraud and to protect their privacy. They claim the result of such legislation will make it harder to manage parental controls for children’s safety and will effectively lower consumer trust.
But they also responded by cutting commission rates in half to a 15% maximum.
Even if South Korea’s move encourages other countries to pass similar laws, the action may not have as big an impact on breaking up the stronghold. Ironically, users and developers will probably still pay through Google and Apple. After all, that’s what makes them comfortable.
And people’s familiarity and convenience usually trump the road less traveled every day of the week.
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