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Google faced backlash from South Korean developers after announcing a 30 percent fee for all app developers.
While Google has taken a 30 percent cut on all in-app purchases on the Play Store through its billing system, some apps have circumvented the rule by using other systems, such as direct credit card payments.
“We have clarified the language in the payment policy to make it more explicit that all developers who sell digital products in their applications must use the Google Play billing system,” Google said in a post Monday. Google would give application developers a one-year grace period to adopt the system, while it will begin to implement the billing system on new Play Store applications from January 20, 2021.
Google said the policy change will not affect most app developers, as nearly 97 percent of those who sell digital products already use Play’s billing system. He added that only 2 percent of South Korean app developers would be affected by the policy change.
The move sparked an outcry from South Korean app developers who fear it will harm the local app industry, Yonhap news agency reports.
Last month, even before Google’s official announcement, the Korean Internet Corporation Association, which represents major local tech companies, such as top portal operator Naver Corp, petitioned the country’s telecom regulator, the Commission Korea Communications Commission (KCC), to investigate the then alleged policy changes.
The group argued that the move would generate more fees for app users and solidify the dominance of Google, which has strong control over the local app market.
Google’s Play Store had 63.4 percent of total app store sales in the country last year at 6 trillion won ($ 5 billion), compared to Apple’s App Store with a 24th share. , 4 percent at 2.3 trillion won, according to the Korea Mobile Internet Business Association.
Local app developers have argued that Google’s move could violate local telecom rules that prohibit unfair restrictions on users choosing services.
