Kakao bows out in payment battle with Google's Play Store

Kakao announced Wednesday that it will take down the link that guides users to payment methods outside of Google's Play Store after locking horns with the global tech giant for two weeks. The latest updates to Kakao's messenger app ..

Kakao's character Ryan [JOONGANG PHOTO]

Kakao announced Wednesday that it will take down the link that guides users to payment methods outside of Google’s Play Store after locking horns with the global tech giant for two weeks.

The latest updates to Kakao’s messenger app Kakao Talk, which were blocked from the Play Store until Tuesday for a terms of service violation, were made available Wednesday afternoon.

“We have decided to take the link down after prioritizing users’ convenience,” Kakao said.

The announcement came a week after executives from the two companies met in an intervention meeting held by the Korea Communications Commission (KCC) last Thursday. The companies agreed to cooperate “in an amicable manner,” according to the KCC.

Earlier this month, the Korean company challenged the in-app payment policy of the $1.5-billion-market-cap tech giant by posting a payment link guiding users to payment methods independent of Google's Play Store.

Updates to Kakao Talk were disabled by Google, making it the first major app to be stopped from making an update due to the in-app payment issue.

Starting April 1, Google said that all apps must either use its in-app purchase system and pay up to 30 percent commission or a third-party system and pay up to 26 percent commission. Apps cannot include a link that directs users to different payment methods to avoid commission.

The company has been warning that those who do not abide by its new payment policy will not be able to update their apps and may even be removed from the app store starting June 1.

The KCC said it will start an investigation into Google’s billing policy. The regulator warned in April that it will deem Google's actions illegal if the company makes the policy effective and take measures accordingly, but it has not yet come to a conclusion about whether Google's refusal to update Kakao Talk is a breach of the law.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]