Apple is not a company that welcomes third-party payment services. The technology giant was in court with Fortnite’s developer Epic Games, for adding an in-game direct payment method before, and even the popular production was even removed from the App Store.
Apple only allowed developers to use their own payment systems in the App Store. But that has now changed with the Telecommunications Trade Act in South Korea. Because, the company announced that the third-party payment period has started in the country in its statement made a while ago. Of course, this situation will bring record level of income loss.
Third-party payment era begins for App Store
South Korea passed an antitrust law called the Telecommunications Commerce Act in 2021 mandating both Apple and Google to allow third-party payment services in apps available on the App Store and Google Play Store.
This law; It includes deterrent fines if Apple and Google require developers to use their own payment services. In short, it paves the way for developers, but it is highly likely that it will cause a serious loss of income to the companies involved. At the same time, the law has a harsh attitude towards commissions.
Although Apple initially objected to this situation, it announced earlier this year that it would comply with the law. He recently announced the beginning of a new era in South Korea. However, it is worth noting that there are some critical details in the company’s statements.
Developers will now be free to use alternative payment methods in the App Store. But here they will need to obtain a StoreKit External Purchase Authorization. As it will be remembered, this was also required by the company when a third-party payment method was introduced to dating-oriented applications in the Netherlands.
Apart from that, Apple will continue to receive commissions from developers for every sale made using an alternative payment method. This rate will be around 26 percent. Of course, as we mentioned above, the Telecommunications Trade Act has a tough stance against commissions. However, the company’s statement is in this direction, unlike South Korean regulators.
So what do you think about this subject? How do you think this development will affect Apple’s revenues? Don’t forget to share with us in the comments!
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