Google pushes back 30% commission charge on new apps until Oct 2021
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According to multiple industry sources on Monday, Google decided to amend Google Play’s payment system and apply in-app payment policy on new apps uniformly in October along with existing apps.
The 10-month grace can save small contents players three times more than the 15 percent cut in commission charges by Apple from January.
In September, Google announced that it will take 30 percent commission on all digital purchases by consumers including webtoon, music, and video streaming. The new policy was to be implemented on Jan. 20 for new apps and from October for existing apps.
The U.S. internet giant’s deferment comes amid heated debates among the government, ruling party, Korea Internet Corporations Association, startups, and related organizations critical of the new rule based on its dominant position.
Google may have decided to take a similar action after Apple announced it was lowering commission fees on Apple Store from January, sources said.
Google’s new billing on its digital store has come under separate investigations by Korean antitrust agency and communications authority. The ruling party has proposed a revised bill to curb abuses by platform operators based on their dominant positions. Google Play Store dominates 63.4 percent of app store sales in Korea.
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