South Korean laws require Google to provide alternative payment options
The high deductions from Apple and Google Stores have attracted the attention of many regulatory agencies around the world, among which South Korea is the country with the fastest and greatest force in handling this incident.
South Korean regulators have joined other agencies to put pressure on Google after completing the investigation, and the most noteworthy thing here is South Korea’s direct legislation to curb monopolistic behavior.
For this reason, Google has to comply with South Korean legal requirements to provide developers with alternative payment options, that is, developers can choose Google or other alternative payment systems.
Due to regulatory pressure, Google has previously provided preferential fee policies for most developers. For example, most developers only need to pay Google a 15% commission.
Originally, the commission fee was as high as 30%, which means that for every $100 of merchandise sold by developers, including in-app purchases, they need to pay a platform commission of $30.
After the adjustment, eligible developers will pay a $15 rake for every $100 sold, but if the developer’s annual income exceeds 1 million US dollars, the excess will be calculated at the original rate.
In the Korean market, Google will allow developers to use alternative payment systems, that is, users can choose the Google Play Store or choose the payment system configured by the developer when paying.
If developers use alternative payment systems, they still need to pay a commission to Google, and the commission will be reduced from 15% to 4% as the operating fee of the Google ecosystem.
In other words, developers must control the alternative payment system’s commission within 11% to make a profit. If it exceeds this service rate, it is not as good as the Google Play Store.
The Google service rate change is only for the South Korean market because currently only South Korean regulators and legislatures have adopted a strong attitude to deal with the monopoly of large technology companies. Therefore, in other markets, developers still pay the commission in accordance with Google’s previously updated policy.
But it is of no use to large developers, especially game developers, because the income exceeding one million dollars still needs to be paid at 30% of the handling fee.
In addition, Apple still takes a very strong stance on the issue of store levy. Apple told the Korean government that its developer policy meets the requirements and will not make other changes.
Of course, whether to reduce the handling fee or open an alternative payment system depends on the attitude of the South Korean government. If the government continues to demand it, Apple will not have to adjust.
If the policy is not adjusted, it may violate South Korean law, so South Korean regulators have the right to investigate Apple’s illegal activities and impose economic penalties.
Via: Reuters
