A Korean lawmaker says that neither Apple nor Google are doing enough to comply with the country’s law that prevents app store operators from forcing app developers to use their payment systems.
“Frankly, we are not satisfied… Apple’s claim that it’s already complying is nonsensical,” lawmaker Jo Seoung-lae who spearheaded the amendment said, explains a Reuters report.
“Excessive fees take away developers’ chances for innovation … parliament is to be closely informed as the government drafts detailed regulations to make sure there is accountability,” Jo said.
South Korea will be the first country to create legislation that curbs tech companies’ payment policies and is expected to announce the initial details of the amendment on Wednesday.
The country amended its Telecommunications Business Act in August, and while the law went into effect in September, the details of what would constitute compliance are being drafted by the Korea Communications Commission.
An early draft of the enforcement ordinance seen by Reuters details a fine of up to “2% of revenue” as penalty for an infraction of the law by app market operators.
“We’ve seen in other jurisdictions that these monetary penalties actually don’t deter companies like Apple and Google because to them, it’s a drop in the bucket,” said Meghan DiMuzio, executive director of advisory group Coalition for App Fairness.