Apple, Google mobile dominance faces tough test in South Korea

A man uses his phone along a pedestrianised shopping area of Seoul. The Telecommunications Business Act would mandate giving users a free choice of app payment providers. — AFP

South Korea is expected to become the first country to pass a law ending Apple and Google’s domination of payments on their mobile platforms, setting a potentially radical precedent for their lucrative app store operations everywhere from India to the US.

Apple Inc and Alphabet Inc’s Google, the effective duopoly controlling most of the world’s smartphones, face a raft of legislative measures in the US rebuking their “gatekeeper control” and urging a curb on their power to dictate terms on app marketplaces. Both charge a fee of typically 30% on purchases made through their stores and exclude alternative payment handlers, arguing this protects users from fraud and privacy invasion.