Google goes ahead with controversial in-app payment policy

Google said on Tuesday that the company is updating its billing policies to require app developers who distribute software through the Google Play Store to use their own in-app payment system.

All developers who are already distributing their software will be required to use the Google Play Store in-app purchase system instead of third-party payment systems, starting in October.

The billing system charges a 30 percent fee to application developers.

As for developers who are just launching their apps on the platform, they will be asked to use the payment system from January 20, according to the announcement.

Google said the detailed policies, however, do not change the intent of the existing guidelines. The new policies will affect only about 3 percent of developers globally who currently do not abide by their rules, according to Google.

Purnima Kochikar, director of Google Play, Apps & Games at Google, said the number is only about 2 percent of developers in South Korea, who are not complying with Google’s billing policies, during a press conference. online held on Tuesday. Kochikar added that the impact of the changed policies here will not be significant given the ratio.

Kochikar added that Android-based smartphones, for example, have always allowed developers and customers to choose which app store platforms to use, dismissing concerns that Google is using its influence in the market to charge high commissions.

In-app purchases made through the Google Play Store in Korea last year reached about 5.9 trillion won ($ 5.05 billion), representing 63.4 percent of the market share here, according to data compiled by the Korea Mobile Internet Business Association.

Google’s announcement came amid local businesses and developers who expressed concern about the high fees charged by the Google Play Store. The Korean government also previously announced that it will review whether Google’s billing policies violate the laws here.

On the Korean government’s decision, Kochikar said that Google will always comply with local laws.

Meanwhile, Google announced that the company has forged the 115 billion won “K-reate” fund to provide financial support to local developers and content creators over the next year.

By Shim Woo-hyun ([email protected])