Online associations protest Apple’s in-app purchase fees

Industrial action has been taken against Apple Inc.’s in-app purchase policy, with groups in Korea protesting the procedure which mandates customers and mobile app developers use its payment tool at its App Store.

The Korea Internet Corporations Association, joined by the Korea Mobile Internet Business Association, Korea Music Content Industry Association and the Korea Internet Content United, said Wednesday it sent a statement last week to Apple, arguing that consumers’ right to choose between different payment methods should be protected.

They also said a communication channel which could discuss such measures with the global software giant should be in place. The association marked Aug. 22 as the deadline for Apple’s reply.

“In the past, people were able to use Web-linked tools to make their payments for the mobile apps, but now it’s a must to go with Apple’s payment tool, which it takes away 30 percent of the developers’ profit,” said Choi Min-sik, a general manager of the association.

“This goes against the fair trade policy here and it’s inappropriate to believe that the current App Store payment policy is the best method to pay for Korean consumers.”

Choi said the biggest problems are seen with e-learning solution apps, as additional fees occur if people choose to continue their studies on wireless devices. In other app stores, people can chose to pay their bills through methods such as automatic response system or mobile phone billing.

Mobile apps that do not follow Apple’s protocol will eventually be shut down and unavailable in its App Store, according to the policy.

The associations plan on taking additional steps after getting Apple’s response and it also considers launching talks with the state media and telecommunications regulator over the issue, if necessary.

Apple’s in-app purchase policy has triggered controversy in other countries, such as the U.S., causing the Kindle, Kobo and Nook e-book stores found in the applications to close down.

By Cho Ji-hyun (sharon@heraldcorp.com)