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Apple, Google no longer in power as fairness is brought to digital economy

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South Korea is the first country to challenge app store payment policies, with a new bill introduced to support content developers.

South Korea challenges app and play store policies.

Google and Apple are now facing criticism for their app store and payment policies across the Asia Pacific.

Currently, app developers are forced to use the proprietary billing systems of the respective tech giants’, however South Korea is challenging this rule.

Under a new bill passed on Tuesday by South Korean parliament, app makers can use external companies to process payments on their apps in Google Play and Apple’s App store.

The country will be the first to challenge Google and Apple’s payment policies, once the bill is signed by President Moon Jae-in.

This comes a week after Apple said it would allow App Store developers to promote alternative payment methods to their user.

Current policies “unfair”

Critics said the current Google and Apple payment legislations were unfair, as the monopolies were entitled to a 30 percent commission.

They also said, developers were left with little choice and had to coincide with the conditions or face not receiving payment and delayed app reviews.

Meghan DiMuzio, the head of the Coalition for App Fairness, welcomes the bill coined the “Google power-abuse-prevention law” with open arms.

“[The law] is a significant development in the global fight to bring fairness to the digital economy,” DiMuzio says.

Apple and Google react

However, in response to the bill, Apple says choice of third-party payment systems may put users at risk of exposure to fraud.

“Users who purchase digital goods…undermine their privacy protections, make it difficult to manage their purchases and features like ‘Ask to Buy’ and Parental Controls will become less effective,” an Apple spokesperson says.

Google also commented on the bill saying its payment system is what helps keep its service fee “free”.

“We’ll reflect on how to comply with this law while maintaining a model that supports a high-quality operating system and app store, and we will share more in the coming weeks.”

Australia follows suit

Australia is also ramping up the pressure by floating reforms for how to tackle payment systems provided by Apple and Google.

Apple’s commissions, can go as high as 30 percent on some purchases made through the company’s platform, with some companies saying they have little choice to comply.

Australian Treasurer Josh Frydenberg has called for new regulations on digital payments.

“Ultimately, if we do nothing to reform the current framework, it will be Silicon Valley alone that determines the future of our payments system.”

Treasurer Josh Frydenberg, the Australian Financial Review newspaper.

The Australian government is considering designating tech companies as payment providers while establishing a strategic plan between the government and the industry.

As a result, an integrated licensing framework will be developed for payment systems.

Written by Rebecca Borg

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Tesla is slashing prices to stay competitive

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Tesla cut the U.S. prices of its Model Y, Model X and Model S vehicles by $2,000 each, days after the first-quarter deliveries of the world’s most valuable automaker missed market expectations.

Elon Musk’s electric-vehicle (EV) maker lowered the prices for its Model Y base variant to $42,990, while the long-range and performance variants are now priced at $47,990 and $51,490, respectively, according to its website.

The basic version of the Model S now costs $72,990 and its plaid variant $87,990. The Model X base variant now costs $77,990 and its plaid variant is priced at $92,900.
Tesla North America also said in a post on X said it would end its referral program benefits in all markets after April 30.

Referral program allows buyers to get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

Musk has postponed a planned trip to India where he was to meet Prime Minister Narendra Modi and announce plans to enter the South Asian market, Reuters reported on Saturday.
On Monday Reuters reported, citing an internal memo, that the EV maker was laying off more than 10% of its global workforce.
Earlier this month Reuters reported the EV maker had canceled a long-promised inexpensive car, expected to cost $25,000, that investors had been counting on to drive mass-market growth.
The EV maker reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand.

Tesla is to report first-quarter earnings on Tuesday.

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TikTok launches Instagram competitor ‘Notes’

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TikTok Notes has launched in Australia & Canada as a formidable competitor to Instagram, offering a unique platform for content creation, text and sharing.

“TikTok Notes is a lifestyle platform that offers informative photo-text content about people’s lives, where you can see individuals sharing their travel tips and daily recipes,” reads the official App Store description.

Take note

The app allows users to create content by combining short videos with text-based notes, closely resembling that of Meta’s Instagram.

Whether it’s sharing a quick tutorial, a personal anecdote, or a thought-provoking message, TikTok Notes is positioned to be a formidable social media platform.

Currently, the app is only available for download and “limited testing” in Australia and Canada.

As it gains momentum, the platform is poised to contest Instagram’s established reign in the social media landscape.

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Ramifications of a TikTok ban to impact Open Internet

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The United States’ longstanding advocacy for an open internet faces a critical juncture as Congress considers legislation targeting TikTok.

The proposed measures, including a forced sale or outright ban of TikTok, have sparked concerns among digital rights advocates and global observers about the implications for internet freedom and international norms.

For decades, the U.S. has championed the concept of an unregulated internet, advocating for the free flow of digital data across borders.

However, the move against TikTok, a platform with 170 million U.S. users, has raised questions about the consistency of America’s stance on internet governance.

Read more – Big tech to handover misinformation data

Critics fear that actions against TikTok could set a precedent for other countries to justify their own internet censorship measures.

Russian blogger Aleksandr Gorbunov warned that Russia could use the U.S. decision to justify further restrictions on platforms like YouTube.

Similarly, Indian lawyer Mishi Choudhary expressed concerns that a U.S. ban on TikTok would embolden the Indian government to impose additional crackdowns on internet freedoms.

Moreover, the proposed legislation could complicate U.S. efforts to advocate for an internet governed by international organizations rather than individual countries.

China, in particular, has promoted a vision of internet sovereignty, advocating for greater national control over online content.

A TikTok ban could undermine America’s credibility in urging other countries to embrace a more open internet governed by global standards.

 

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