On Thursday, Google announced that it plans to allow third-party payment systems in South Korea. It is noteworthy that this is the first time the US tech giant has changed its payment policy for a specific country.
Google’s initiative follows a request from the Korean Communications Commission that Google and Apple must develop compliance plans for a new law. The law prohibits major app store operators from forcing software developers to use their payment systems. The extent of the advanced law went into reaction in mid-September.
This restriction is the first step by a large economy. Google and Apple are facing global criticism for demanding the use of proprietary payment systems, which charge up to 30%.
In August, Parliament passed a modification to the South Korean TBAE “Anti-Google Law”. The shift bans extensive app store engineers, including Apple and Google, forcing planners to use payment systems. This effectively stops them from paying commissions for in-app purchases.
According to a statement issued by Google, the company respects the decision of the National Assembly. Accordingly, plans to make some changes to respond to the new law. Developers selling in-app digital services and merchandise will have the opportunity to add an alternative billing system to South Korea, in addition to Google Play billing.
Google, which charged developers a 15% service charge for app distribution, said the figure would be reduced to 11%. It is still unclear how profitable this move will be for developers. The company has explained that alternative billing connections may not take the same insurance or payment benefits as Google Play billing structure features. According to the KCC, Google’s plans will be implemented this year and only apply to South Korea.
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According to KCC Chairman Han Sang-hyuk, they confirmed Google’s decision to obey the law. He hopes that the legislative purpose of the amended law will implement the policy change. In October, Apple told the South Korean government that it was already complying with the new law. Moreover, Apple added that it had no plans to change its app store policy.
KCC said it was asking Apple’s South Korean entity to develop a new policy that would allow more autonomy in payment methods. If Apple did not comply with the request, the KCC would consider measures such as a fact-finding investigation, which implies the imposition of possible fines.
We wonder how effective the changed policy will be for Google and Apple’s response to the new request.
