South Korea is the first country to pressure Google and Apple to make their respective app stores accessible to other gateways. The parliament Act passed on Tuesday will give users the alternative to choose their favorable method. The bill stresses that users must allow firms to carry out financial contracts directly with the customer.
To back this move, the Parliament authorized a bill on August 31 banning the app stores from needing inventors to use their corresponding in-house remuneration systems. Instead, it gives customers the choice to pay using other remission gateways. Once President Moon Jae-in ratifies the bill, it will become law.
Apple and Google impose 30% commission on purchases made
Apple and Google charge their users a commission of up to 30% for purchases made through their corresponding stores. Citing that users will be cushioned from embezzlement and privacy breach, the corporate giants allow no room to substitute payment managers on their platforms.
In that context, Epic Games Inc. has dragged Apple and Google to court, disputing that the providers’ fee terming it as unjust.
It seems like the two app stores deal with payments adding up to billions of dollars every quarter. The universal Smartphone era commenced around ten years ago with Apple and Google continuing to hold on to the duopoly in the space based on the dividends that the two firms share.
Services And Subscriptions Revenue Booming For Apple And Google
The app store yields a yearly income of about $20 billion, according to Sensor Tower. Meanwhile, India is proving to be Google’s prospective market, keeping in mind a spike in the number of internet users in the nation.
The chain of undesirable events that takes place in the world of apps exceeds $142 billion. Amazon.com Inc. and Facebook Inc., compete with Google and Apple, and so far they are the four companies that have, indisputably, built up a sizeable online marketplace on which their opponents do business.