SEOUL - Google and Apple Inc. will have to open their app stores to digital payment systems in South Korea, threatening to open their lucrative commissions on alternative sales. The bill passed on Tuesday in South Korea's national assembly is the first to dent the tech giant dominance over how apps sell their digital goods. When the bill is signed by President Moon Jae-in, it will become law once endorsed by his party which strongly rejected the legislation. The law amends South Korea's Telecommunications Business Act to prevent large app-market operators from requiring the use of their own networks. It also bans operators from unreasonably deleting the approval of apps or delaying the creation of applications in the marketplace - provisions meant to stop retaliation against app makers. Companies that fail to comply can be fined by the Korea Communications Commission - Ministry of State for subconductive revenue up to 3% of their South Korean business revenues. The law will be reviewed by regulators in other places - such as the UK and Europe -, which also scrutinize global tech companies said Yoo Byung-joon, a professor of business at Seoul National University, who researches digital commerce. The decision reflects a broader trend to step up regulation of technology-platform businesses, which have been criticized for having too much power, said Mr. Yoo. After a committee decision in late August that pushed the bill to final-voting at the National Assembly, Apple said it was concerned that users who purchase digital goods through other payment systems will be at greater risk of fraud and privacy violations. Wilson White, Senior Director of Public Policy, at Google has said the rushed process hasn't allowed enough analysis of the negative impact of this legislation on Korean consumers and app developers. The bill - which has been referred by some lawmakers and media as the Google power abuse prevention law - was welcomed by groups representing South Korea's internet-technology companies and startups, as well as local content developers and app makers. This is a significant step forward for the creation of a fairer app ecosystem, said Kwon Se-hwa, general manager of the Korea Internet Corporations Association. In the second quarter, Google's Play store accounted for 75% of mobile app downloads globally. Apple accounted for 65% of the same quarter, according to App Annie, a mobile app analytics company, for purchases in-app and subscriptions. The companies don't break the own app-store revenue in South Korea, but it is likely a small fraction of the total revenue. Globally, services including the iPhone app store generated $53.8 billion in revenue of Apple in its last fiscal year - 2017,4 billion in revenue. Last year, Google parent Alphabet reported $182.5 billion in revenue, of which Google other revenue accounted for $21.7 billion with Google Play store sales accounted for $182.5 billion. Apple and Google face litigations and regulatory probes in multiple countries around their requirements that apps listed on the iPad marketplaces use independent payment systems that cost up to 30% of in-app sales in most cases. The European Union, in December proposed the Digital Markets Act, meant to prevent large tech platforms from banning gatekeeper position. GET FOX BUSINESS ON THE GO BY CLICKING HERE Attorneys general from 36 U.S. states and the District of Columbia have filed an illegal lawsuit against Google alleging its Google Play app store is antitrust monopoly. And a bipartisan bill introduced in the U.S. Senate recently would restrict how Apple and Google app store operate and what rules can be imposed on application developers. Fortnite maker Epic Games Inc. publicly challenged Google and Apple by installing a payment system inside the game that prevented them from collecting their typical 30% cut. After Epic sued Google after Apple banned combat game from their store? Apple and Epic are waiting verdict on their suit. Last year, Apple reduced the commission it charges for in-app sales to 15% for small developers that generate no more than one million in revenue through its app store. Google followed suit this year by demonetizing the acquisition of $1 million that developers earn on the app store to 15%. In August, as part of a proposed settlement of the federal lawsuit filed by Apple, Apple said it would allow developers to use data captured from apps - such as email addresses - to tell customers about alternatives to Apple's payment system. The developer wouldn't be able to promote payment systems on mobile apps however. The Coalition for App Fairness dismissed the change, saying it doesn't fundamentally address the structural, foundational problems facing all developers. The South Korean lawmakers set their legislation in motion last year after Google announced that all apps would have to use the company's proprietary payment system, expanding a requirement that previously applied to game apps. That drew strong protest from local app makers and content developers.