Epic Games chief to speak in S.Korea as Google, Apple face app store challenge
Reuters
Published Nov 10, 2021 05:21PM ET
By Stephen Nellis
(Reuters) - The chief executive of "Fortnite" creator Epic Games and other vocal critics of Apple Inc (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) Inc's Google plan to speak in South Korea, where the two American tech giants face new regulations forcing them to open their app stores to third-party payments.
Tim Sweeney and representatives from Match Group (NASDAQ:MTCH) plan to speak at a conference next week about fairness in online ecosystems, according to a representative for the companies.
Sweeney's visit to Korea comes a day after a U.S. judge denied Apple's request https://www.reuters.com/technology/us-judge-skeptical-apples-request-pause-fortnite-antitrust-orders-2021-11-09 to pause a set of court orders handed down after a lengthy antitrust trial between Apple and Epic Games. Those orders could require Apple to allow developers to create in-app buttons and links to third-party payment systems.
In August, South Korean lawmakers amended the country's Telecommunication Business Act. Under the change, the operators of app stores would have to allow third-party payment systems in their stores instead of forcing developers to use in-app payment systems that charge commissions.
The Korean Communications Commission (KCC) has asked both Apple and Google to submit compliance plans.
Last week, Google said it had submitted a plan https://www.reuters.com/technology/google-plans-allow-third-party-payments-systems-skorea-2021-11-04 that would for the first time allow third-party payments, but it is unclear whether the plan will lower costs for developers.
Rather than charge its standard 15% commission for the use of its in-app payment system, Google said it will charge developers who use their own payment system an 11% commission. Those developers will likely pay an additional 3% to 4% in fees to an outside payment processor.
Apple has not said whether it has submitted a compliance plan. In October, a Korean official told Reuters https://www.reuters.com/technology/skorea-targets-apple-over-new-app-store-regulation-2021-10-15 Apple has told regulators it does not believe it needs to make any changes to its current business practices, potentially putting the iPhone maker on a collision course with regulators.
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Written By: Reuters
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