Info-tech

ADIF urges legislative reforms for app economy in India

BL Mumbai Bureau | Updated on: Mar 10, 2022

The rule under the law bars “the act of forcing a specific payment method to a provider of mobile content”.

After South Korea approved the rules on app store law targeting Apple and Google’s commission issues, Indian start-up industry body the Alliance of Digital India Foundation (ADIF) applaud the move urging similar legislative reforms in India .

The South Korean law known as the ‘enforcement ordinance’ that will be put into effect on March 15. The rules state it bars “the act of forcing a specific payment method to a provider of mobile content”.

Sijo Kuruvilla George, Executive Director, ADIF said, “ADIF welcomes this move and believes that it is an important step towards creating a level-playing field for the start-up and developer communities. We also hope that it sets the right precedent to be followed in the future by other nations looking to build a competitive app economy.”

Unfair control and delays

The Korean rules also control actions such as unfairly delaying reviews of mobile content, as well as refusing, delaying, or limiting the registration, renewal, or inspection of content that uses third-party payment systems. Failing to abide by the law could cost store operators fines as much as 2 per cent of average annual revenue from related business activities.

ADIF said in a statement, “There has been a worldwide backlash against Apple and Google over their mandatory high commission on digital goods, and anti-trust watchdogs globally are investigating their abusive practices. South Korea has, however, been the first to put its foot down by passing a law to reign in these global giants.

In India as well, the Competition Commission of India (CCI) has been investigating both Google and Apple for their abuse of power. However, the fact that Apple has blatantly ignored the order from Netherlands’ top competition regulator and has instead chosen to pay fines rather than do anything to change its policies, highlights the urgent need and importance of legislative reforms.”

Published on March 10, 2022
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