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SEOUL, Nov 4 (Reuters) – Alphabet’s Google said on Thursday it plans to allow third party payments systems in South Korea in order to comply with the country’s new law, which bans major app store operators from forcing software developers to use their payments systems.
Google’s announcement comes after the Korea Communications Commission’s (KCC) request https://www.reuters.com/technology/apple-google-asked-turn-skorea-compliance-plans-by-mid-october-2021-09-29 for the U.S. tech giant to come up with compliance plans for the new law that went into effect in September.
In late August, parliament passed an amendment to South Korea’s Telecommunications Business Act – dubbed the “anti-Google law” https://www.reuters.com/technology/skoreas-parliament-passes-bill-curb-google-apple-commission-dominance-2021-08-31 – banning big app store operators from forcing developers to use their payment systems, effectively stopping them from charging commissions on in-app purchases.
Most of the new law went into effect in mid-September.
“We respect the decision of the National Assembly, and we are sharing some changes to respond to this new law, including giving developers that sell in-app digital goods and services the option to add an alternative in-app billing system alongside Google Play’s billing system for their users in South Korea,” Google said in a statement.
Google added that alternative billing systems may not offer the same protections or payment options and features of Google Play’s billing system.
The KCC said Google has proposed plans, which allow alternative payment systems at lower fees. These will only be applied to South Korea.
Google plans to implement the new payment policy this year, the KCC said.
(Reporting by Heekyong Yang; Editing by Jacqueline Wong and Richard Pullin)