For months, Apple and Google have been fighting a bill in the South Korean legislature that they say could imperil their lucrative app store businesses. The companies have appealed directly to South Korean lawmakers, government officials and the public to try to block the legislation, which is expected to face a crucial vote this week. From a report: The companies have also turned to an unlikely ally, one that is also trying to quash their power: the United States government. A group funded by the companies has urged trade officials in Washington to push back on the legislation, arguing that targeting American firms could violate a joint trade agreement.
The South Korean legislation would be the first law in the world to require companies that operate app stores to let users in Korea pay for in-app purchases using a variety of payment systems. It would also prohibit blocking developers from listing their products on other app stores. How the White House responds to this proposal poses an early test for the Biden administration: Will it defend tech companies facing antitrust scrutiny abroad while it applies that same scrutiny to the companies at home?
Washington has a longstanding practice of opposing foreign laws that discriminate against American firms, sometimes even when doing so conflicts with domestic policy debates. But President Biden wants a consistent approach to his concerns about the tech giants’ incredible power over commerce, communications and news. In July he signed an executive order to spur competition in the industry, and his top two antitrust appointees have long been vocal critics of the companies. The approach the White House chooses may have widespread implications for the industry, and for the shape of the internet around the world.
Read more of this story at Slashdot.