Policy

August 31, 2021

Bad News for Big Tech

Speaking of Apple — is the Apple app store a monopoly? ðŸĪ” A number of lawsuits against Big Tech players argue that it is. 

Google and Apple are both in bitter wars with their app store developers. Famously, Fortnite creator Epic Games sued Apple and Google over their app store practices. It’s one of hundreds of lawsuits, many brought by state governments and app developers from the “Coalition for App Fairness.“ The coalition includes notable members like Match Group (Tinder), Epic, and Spotify.

Today, South Korea spiced up this ongoing beef. ðŸŒķïļ The country is expected to pass a law banning Apple and Google’s monopoly on app store payment requirements. In other words, Apple and Google won’t be able to hold developers in contempt for circumventing their commissions.

In most of the world, Apple and Google take a 30% commission on app purchases, in-app purchases, subscriptions, and other payment options. But once the bill passes in South Korea, app developers can use any payment provider they want. 

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South Korea’s move could mean bad news for Apple and Google, especially if it inspires copycat legislation in other countries. The app store generates hefty cashflow for both companies.

$AAPL fell 0.84% today. $GOOG fell less than 1 bp.

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