Apple's Proposal to Allow Third-Party Payment Methods in App Store 'Lacks Detail,' Says South Korean Regulatory Commission

Apple's plans to allow developers to use third-party alternative payments methods within their apps in South Korea "lacks concrete detail," according to South Korea's Communications Commission (KCC).

General App Store South Korea Feature Feature
In August, South Korea passed a law that bans app store operators from requiring developers to use their in-app purchase systems. Last month, Apple submitted its compliance plans to the KCC that would allow apps in Apple's South Korean App Store to use third-party payment methods within their apps. Apple's plans include that the company will still take a commission for all purchases made, even those made with third-party alternative payment methods, but specific details were not shared.

Now, ahead of the law being finalized and enacted, South Korea's KCC says Apple's submitted plan "lacks concrete detail," reports Reuters. KCC is unhappy that both Apple and Google still plan to charge a commission on purchases made with third-party payment methods, arguing that such a commission will entice developers to stay with the app stores' respective, default payment process.

"As a result of any policy, if app developers find it realistically difficult to use an alternative payment system and resort to using the dominant app store operator's payment system, it would not fit the law's purpose," the official said, adding that this stance would likely be reflected in the final ordinance."

A similar series of events have taken place in The Netherlands, one of several countries looking into Apple's ‌App Store‌. Dating apps in The Netherlands will soon be allowed to use third-party alternative payment methods. Apple's plans to comply with the law in The Netherlands have been criticized for being inadequate in addressing concerns, leading to a fine of 5 million euros per week up to a maximum of 50 million euros until Apple complies.

"We look forward to working with the KCC and our developer community on a solution that benefits our Korean users," Apple had previously said in a statement about the law in South Korea. "Our work will always be guided by keeping the ‌App Store‌ a safe and trusted place for our users to download the apps they love," the company added.

Popular Stories

Generic iOS 19 Feature Mock Light

iOS 19 Leak Reveals All-New Design

Friday January 17, 2025 2:42 pm PST by
iOS 19 is still around six months away from being announced, but a new leak has allegedly revealed a completely redesigned Camera app. Based on footage it obtained, YouTube channel Front Page Tech shared a video showing what the new Camera app will apparently look like, with the key change being translucent menus for camera controls. Overall, the design of these menus looks similar to...
2024 iPhone Boxes Feature

Apple Changes Trade-In Values for iPhones, iPads, Macs, and More

Thursday January 16, 2025 6:45 am PST by
Apple today adjusted estimated trade-in values for select iPhone, iPad, Mac, and Apple Watch models in the U.S., according to its website. Some values increased, while others decreased. The changes were not too significant, with most values rising or dropping by $5 to $50. We have outlined some examples below: Device New Value Old Value iPhone 15 Pro Max Up to $630 U ...
2024 App Store Awards

Apple Explains Why It Removed TikTok From the App Store in the U.S.

Sunday January 19, 2025 6:58 am PST by
Apple on late Saturday removed TikTok from the App Store in the U.S., and it has now explained why it was required to take this action. Last year, the U.S. passed a law that required Chinese company ByteDance to divest its ownership of TikTok due to potential national security risks, or else the platform would be banned. That law went into effect today, and companies like Apple and Google...
Generic iOS 18

Everything New in iOS 18.3 Beta 3

Thursday January 16, 2025 12:39 pm PST by
Apple provided the third beta of iOS 18.3 to developers today, and while the betas have so far been light on new features, the third beta makes some major changes to Notification Summaries and also tweaks a few other features. Notification Summary Changes Apple made multiple changes to Notification Summaries in response to complaints about inaccurate summaries of news headlines. For...
iOS 19 Roundup Feature

iOS 19 Rumored to Be Compatible With These iPhones

Saturday January 18, 2025 10:28 am PST by
iOS 19 will not drop support for any iPhone models, according to French website iPhoneSoft.fr. The report cited a source who said iOS 19 will be compatible with any iPhone that can run iOS 18, which would mean the following models: iPhone 16 iPhone 16 Plus iPhone 16 Pro iPhone 16 Pro Max iPhone 15 iPhone 15 Plus iPhone 15 Pro iPhone 15 Pro Max iPhone 14 iPhon...
iPad Pro vs iPhone 17 Air Feature

Here's How Thin the iPhone 17 Air Might Be

Friday January 17, 2025 3:38 pm PST by
For the last several months, we've been hearing rumors about a redesigned version of the iPhone 17 that Apple might call the iPhone 17 "Air," or something along those lines. It's going to replace the iPhone 17 Plus as Apple's fourth iPhone option, and it will be offered alongside the iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max. We know the iPhone 17 Air is going to be super slim, but...
mail categories macos

Apple's Redesigned Mail App is Expanding to the Mac — Here's When

Sunday January 19, 2025 6:02 am PST by
Apple plans to expand the iPhone's redesigned Mail app to the Mac starting with macOS 15.4, according to Bloomberg's Mark Gurman. The first macOS 15.4 beta should be made available in the coming weeks, and Apple has previously suggested that the iOS 18.4, iPadOS 18.4, and macOS 15.4 series of software updates will be released to the public in April. The revamped Mail app debuted on all...
apple power beats pro 2

Powerbeats Pro 2 Coming Soon: Apple to Announce Them 'Imminently'

Sunday January 19, 2025 8:25 am PST by
In September, Apple said that it would be launching Powerbeats Pro 2 in 2025, and it appears the wireless earbuds are coming very soon. Powerbeats Pro 2 images found in iOS 18 code In his Power On newsletter today, Bloomberg's Mark Gurman said the Powerbeats Pro 2 are "due imminently." In addition to Apple filing the Powerbeats Pro 2 in regulatory databases last month, Gurman said Apple is...

Top Rated Comments

Michael Scrip Avatar
39 months ago
Google has already stated how they will handle commissions in South Korea:

15% if you use the Google Play Store payment system
11% if you use another payment system

I'm guessing Apple will do something similar.

But you may be saying "that's only 4% less... once the developer pays for outside payment processing... it'll be roughly the same as if Google handled it all!"

That's true! So maybe instead of arguing about

"alternative payment systems"

developers should have been begging for

"lower commission fees"

Because guess what... payment fees are pretty standard nowadays. 3% to 4%

But it's the platform commission fees were always the bulk of what developers paid.

No one ever talked about it because it was all rolled into one flat fee.

But now that we can separate platform fees and payment fees... I guess people will start arguing about commission fees next!

:p
Score: 9 Votes (Like | Disagree)
neuropsychguy Avatar
39 months ago
“KCC is unhappy that both Apple and Google still plan to charge a commission on purchases made with third-party payment methods.”

There ain't no such thing as a free lunch. If the commission fees are banned, the companies will make it up elsewhere.
Score: 9 Votes (Like | Disagree)
DelayedGratificationGene Avatar
39 months ago
It’s absurd to think Apple will never be allowed to charge a commission with or without payment options. If that happened then every platform from Walmart to PlayStation would never make money and be forced out of business. Stop even questioning the commission aspect because it’s NOT going away.
Score: 8 Votes (Like | Disagree)
AndiG Avatar
39 months ago

Google has already stated how they will handle commissions in South Korea:

15% if you use the Google Play Store payment system
11% if you use another payment system

I'm guessing Apple will do something similar.

But you may be saying "that's only 4% less... once the developer pays for outside payment processing... it'll be roughly the same as if Google handled it all!"

That's true! So maybe instead of arguing about

"alternative payment systems"

developers should have been begging for

"lower commission fees"

Because guess what... payment fees are pretty standard nowadays. 3% to 4%

But it's the platform commission fees were always the bulk of what developers paid.

No one ever talked about it because it was all rolled into one flat fee.

But now that we can separate platform fees and payment fees... I guess people will start arguing about commission fees next!

:p
Guess that is the point. Apple has never declared how it is going to control bank transfers and collect fees. What is the difference between using a locally implemented in app payment and a payment on a website? What if the app invokes a website for payment? What if the app displays the website in an integrated browser within the app?

Guess Apple is simply not allowed to control transfers of money? Why doesn't Microsoft charge me, when I use internet banking using Microsofts edge browser on Windows?

Apples proposal is simply rediculous. Will Apple charge me for any bank transfer that is done using macOS? What if I buy a movie on AmazonPrime using macOS? What if I use iPadOS? Does it make a difference if I use an App or the browser?

Lots of questions.

They got very greedy ...
Score: 8 Votes (Like | Disagree)
DelayedGratificationGene Avatar
39 months ago
“Ok Epic here is your commission invoice for your 3rd party payment transactions”….”what?”…”wait!”…”so now it’s costing me to have a 3rd party payment system PLUS I still have to pay you guys commission for your awesome platform?!”…”man this is going all the wrong way!”……hmmm I should have thought this out better
Score: 6 Votes (Like | Disagree)
macar00n Avatar
39 months ago
If they're going to act like this, then they should have the iPhone and its app store taken away. Imagine telling a physical store that you want to put your products on its shelves for free, want your own payment method added to their checkout for free, and dictate the exact terms of how they are sold. South Korean lawmakers are completely out of touch, and would be straightened out by their citizens in about ten minutes if Apple threatened to pull out of the country.
Score: 6 Votes (Like | Disagree)