Big tech just took a hit in S.Korea, as the government proposed a new law to curb Google & Apple’s dominance over the app store… and say no to “Apple tax” and “Google tax” – call it “anti-Google law”.
Apple tax? What’s that?
Have you tried to buy an app or make a membership subscription on iPhone? App developers can only get 70% of our money, and Apple takes the remaining 30% as the commission for using their payment system – that’s called an “Apple tax”.
- Similarly, “Google tax” is the Android version of that commission. Developers must use their systems and cannot circumvent the “tax”… or they will be banned from using their app stores.
That’s absolutely a huge number. In S.Korea only, Apple has made USD 7.3 bln to date as their commission (for doing nothing 🙃).
That’s a lot! No wonder it’s blocking them…
The S.Korean government thinks Google and Apple inappropriately forced app developers to use their payment system. So they proposed an amendment to the country’s Telecommunications Business Act, or simply call it “anti-Google law”.
- If passed, the bill would prevent big tech from doing that… S.Korea will also become the first major economy curbing the “Apple tax”. 🇰🇷
Big tech wasn’t happy 🤬 (as we can imagine). Apple claimed that the bill would put users at risk of fraud, as they spend that commission on ensuring the platform’s safety. Plus, Google said that the process was “rushed”, and the analysis here is not enough.
What’s next? The final vote will happen next week. We’ll have to wait and see 🤔