South Korean developers will be able to choose between the integrated payment system in the App Store and an alternative payment system. But Apple has provided for many constraints and will still receive a commission on sales.
Apple may try to fully control the terms of use of its application store by developers, but it must comply with new laws that are in place in certain countries. This is the case in South Korea where the Telecommunications Business Act has recently been amended. It now requires that apps distributed by the App Store, or any other similar store, be allowed to offer an alternate payment processing option. To comply with this law, Apple authorizes developers to use the StoreKit External Purchase Entitlement, to offer in their application an alternative payment option to that integrated in the App Store. The manufacturer specifies that developers can continue to use the integrated payment system if they wish.
But to discourage them, Apple multiplies the warnings. Thus, the functions of the App Store Ask to Buy (control of children’s purchases) and Family Sharing (family sharing) will no longer be available for apps that have chosen an alternative payment system, because the manufacturer cannot control the payments made outside of its secure system. Then, Apple clarifies that it will not be able to help users after their purchases, for example with refunds, history and subscriptions issues. It will be up to the developer to provide the necessary assistance.
Should South Korean designers claim victory for all that? Not exactly, as shown by a apple document which is intended for them. First, they must apply to use the StoreKit external purchase right and choose a payment service from those that have been validated by Apple. In the case of another service, it will have to go through a verification phase. And for applications distributed also in other countries, it will be necessary to transmit a separate binary file, which will only be published in the App Store of South Korea.
Apple will charge a 26% commission
Then, the developers will have to provide Apple with their monthly sales statement. For a very simple reason: the manufacturer takes a 26% commission on payments. The gain is low compared to the 30% usually charged with the integrated payment system (this amount drops to 15% for small developers). Note that Google was also obliged to comply with the new law and also lowered its commission by 4% for alternative payments.
And the restrictions don’t stop there. An application will not be able to have the integrated system and an alternative system. It will be one or the other. In addition, payment must be made within the app and cannot use web content. Something to discourage those who would like to try the adventure…
South Korean developers thus join their Dutch counterparts with one important difference: in the Netherlands, Apple’s authorization only concerns dating applications. In Japan, the manufacturer has also relaxed its rules for applications such as Kobo, Kindle, Spotify or Netflix. These may include a link to their websites, in order to allow users to create or manage their account without going through the services of the App Store.
But the situation could change in Europe with the Digital Markets Act (DMA). This new regulatory framework for the digital market will pave the way for alternative application stores (sideloading), a subject that annoys Apple, and above all for the plurality of payment systems. However, the entry into force of the text has been postponed by one semester by the European Commission.
Source :
The Verge