[2021 National Audit] Apple Prohibits In-App Alternative Payment Methods... Korea Communications Commission Says "Contrary to Legal Intent"

On the 21st, at the National Assembly Science and ICT Committee's final inspection,
Yoon Goo, Apple Korea CEO, conveyed the headquarters' position
Byun Jae-il: "Violation of the law banning forced in-app payments"

Yoon Goo, CEO of Apple Korea, appeared as a witness at the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee's audit of the Korea Communications Commission held on the 21st, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Cha Min-young] Apple headquarters has maintained its policy of not allowing alternative payment methods within the App Store, violating the 'In-App Payment Mandatory Prohibition Act (Amendment to the Telecommunications Business Act)' that took effect on the 14th of last month. In this regard, the Ministry of Science and ICT, the competent authority, directly stated that this is 'illegal,' raising the possibility of a legal violation.

Yoon Goo, CEO of Apple Korea, appeared as a witness at the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee comprehensive audit on the 21st and conveyed this headquarters policy.

Democratic Party lawmaker Byun Jae-il pointed out, "According to Apple's submitted response, they claim that not allowing alternative payments within the app but permitting them through external links is legal. However, even if alternative payment methods are allowed via external links, it cannot be considered legal if Apple’s main App Store does not permit alternative payment methods."

Han Sang-hyuk, Chairman of the Korea Communications Commission, also stated, "This goes against the purpose of the law."

Regarding the question, "Are you creating a separate App Store exclusively for Korea in relation to the business model change?" CEO Yoon replied, "I am not involved in the discussions, so I do not know well."

Lawmaker Byun urged, "Inform Apple headquarters that the Korea Communications Commission has responded that this violates the In-App Payment Mandatory Prohibition Act and demand that they prepare countermeasures."