Apple Enables Third-Party Payments in South Korea in Response to New Law

apple, app store, commissions, south korea

Apple is now allowing third-party payments in South Korea in response to a new law requiring major app stores to allow alternative payment methods, according to multiple reports on Thursday (June 30).

While Apple will still get a commission, it will be 26% instead of the 30% it reaped from direct payments. In its documentation to developers, Apple said all sales will have to be reported monthly and commissions paid accordingly.

See also: Apple Fights Big Tech Regulation Over App Payments

South Korea’s Telecommunications Business Act passed last year states that large platform companies can’t force developers to use their in-app payment systems. While Apple and Google were against the legislation, saying it would undermine their privacy protections, the law passed and is being enforced.

Developers for the Korean App Store must create an alternative version of their apps to sidestep Apple’s payment system. The alternate must be approved by Apple. So far, Apple has approved KCP, Inicis, Toss and NICE, Engadget reported. Some features like Ask to Buy and Family Sharing won’t be available, and Apple won’t handle subscription management or refunds.

Read more: Square Working With Apple to Enable Tap to Pay on iPhones Within POS

Apple’s control over in-app payments is being chipped away in the Netherlands as well, with the Dutch competition regulator ordering Apple to allow dating apps to use alternative in-app payment systems, The Verge reported.

The European Union’s planned Digital Markets Act (DMA) also has provisions regarding Apple’s policies and would allow users to install apps from third-party sources, and enable App Store developers to use alternatives to Apple’s payment systems.

Related: Apple Shares Drop After Morgan Stanley App Store Warning

Proposed U.S. Senate bills on the table would force Apple to allow app sideloading on iOS, among other measures. Last year, Apple published a 16-page report explaining why it should be able to keep its ecosystem closed, Engadget reported.