Google introduces an alternative in-app payment system in South Korea
Google introduces an alternative in-app payment system in South Korea

Google has announced changes to its in-app payment options in South Korea, a huge step backwards for the tech giant as governments around the world try to take control of Google and Apple over their mobile systems.

The company said in a blog post that it is making third-party payment options appear in the Android app for in-app purchases using the Google Play billing system.

If the user uses a third-party payment system, the company still charges a commission to the developer. However, to offset the cost of APS, this fee is reduced slightly.

Google said the service fee continues to distribute apps across Android and Google Play based on digital sales across the platform. However, we understand that developers have to bear the cost of supporting their billing system. Therefore, when users opt for alternative billing, we reduce our developer service fee by 4%.

For example, for the vast majority of developers who pay 15% for transactions billed by Google Play, the service fee for transactions billed for replacement is 11%.

To take another example, certain types of apps that participate in the multimedia experience program (such as e-book providers) pay a 10% service fee for transactions made through the Google Play billing system, or you pay for it. Transactions made through an alternative system 6% service charge.

The company said that this approach allows it to comply with South Korean laws while investing in the Google Play ecosystem.

Google's control over in-app payments is affected

The company is making these changes in accordance with specific laws passed by South Korea last August. The bill aims to prevent operators of large app stores from requiring developers to use only their payment systems.

This law is the first of its kind to enforce such changes in Android and iOS. Despite the fact that the United States and Europe have considered similar laws.

Apple has not made any changes to the mobile payments structure in South Korea in response to this legislation. According to the Wall Street Journal, the company has notified the South Korean government that its current policies are in line with the law.

The newspaper pointed out that the precise wording of the law may leave Apple some room for maneuver. The law does not directly regulate the work of the bodies. However, he stressed that unreasonable fees should not force applicants to choose a particular payment method.

Presumably, Apple will argue that its claims are not unreasonable. If the Korea Communications Commission, the government's enforcement agency, does not agree, it can investigate Apple's actions, which could result in fines for the company.

Previous Post Next Post