Apple has released a proposal to reform App Store regulations amid pressure from antitrust authorities in the European Union (EU) following the United States, raising attention on whether South Korean app developers can escape the 'commission exploit' reaching 30%. Earlier, President Lee Jae-myung promised to supplement the law to ban mandatory in-app commissions as part of his presidential campaign.
Apple announced on the 26th (local time) that it would reform App Store regulations to include a new commission system to avoid additional penalty surcharges under the EU's Digital Markets Act (DMA). The DMA is the so-called 'Big Tech Regulation Act' that has been implemented in the EU since March last year to regulate anti-competitive practices of big tech corporations such as Apple, Amazon, and Meta.
In-app payment refers to a method that limits payments for paid content in apps only through Google or Apple's payment systems. Google and Apple take a commission of up to 30% when app developers allow customers to download apps on their platforms, such as 'Play Store' and 'App Store.' As Google and Apple monopolize the app market, app developers have no choice but to pay this commission.
According to the reformed regulations, app developers within the EU can inform customers that there are cheaper purchasing options outside of in-app payments when buying products in the Apple App Store. They can also freely promote alternative payment options through various methods such as websites, apps, and other app stores. The maximum commission imposed on developers has also been reduced to a maximum of 15%. Previously, the wording and expressions that developers could use when advertising in the Apple App Store were strictly limited.
Earlier, EU authorities warned of imposing a large additional penalty surcharge on Apple. The European Commission reported in April that the 'anti-steering' clause of the Apple App Store violated the DMA and imposed a penalty surcharge of 500 million euros (approximately 800 billion won). However, Apple stated that it plans to take legal action against the penalty surcharge itself, separate from this reform proposal.
As Apple relaxes its in-app payment policy in Europe, attention is focused on whether South Korean developers can reduce their burden on commissions in the future. In South Korea, the 'Mandatory In-App Payment Prohibition Law' was implemented for the first time in the world in March 2022. However, Google and Apple still impose a commission of up to 30% while allowing the application of external payment systems.
According to the '2024 App Market Survey' conducted by the Korea Communications Commission and the Korea Internet & Security Agency (KISA), 70.4% of app developers cited 'excessive commission' as the biggest problem with in-app payments. 'Unclear revenue settlement for refunds' (11.6%) and 'restricted payment method options' (8.9%) followed.
The Lee Jae-myung government has expressed its intention to prevent big tech companies such as Google and Apple from imposing high commissions on domestic app developers. The Democratic Party of Korea stated last month in its presidential campaign that it would enhance global equity in app markets through legislative supplementation of the 'in-app payment prohibition law.' This means ensuring that app market operators do not impose discriminatory conditions on external payments and obligating them to set reasonable levels of commissions.
An IT industry official noted, 'We have been trying in various ways with the political sector and the industry to escape the excessive commissions, but it is still insufficient,' adding that 'the new government should pay attention to ensure that Korean developers, such as those in the gaming industry, do not receive unfair treatment.'