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Google Announces Changes to its in -app Payments Options in South Korea
6 Nov, 2021 / 07:30 AM / Reeny Joseph

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Google plans to make changes to its in-app payments options in South Korea This was announced by the company in a blog post .Google says it will allow third-party payment options for in-app purchases to appear alongside its own Google Play billing system in Android apps. The company will still charge developers a commission if users pay using a third-party system, but this fee will be reduced slightly as compensation for the costs of supporting alternative payments.

Service fees for distributing apps via Android and Google Play will continue to be based on digital sales on the platform. We recognize, however, that developers will incur costs to support their billing system, so when a user selects alternative billing, google will reduce the developer’s service fee by 4%. Google says this approach will allow it to comply with South Korean law while still investing in the Google Play ecosystem .

Google is making these changes in response to specific legislation passed in South Korea last August the bill, dubbed the “Google power-abuse-prevention law” by some in the South Korean media, is intended to stop the operators of large app stores from requiring developers to only use their own payment systems.

The bill is the first of its kind to mandate such changes in Android and iOS, though similar legislation has been considered in the US and Europe.

Apple itself is not making any changes to its mobile payment structure in South Korea in response to this legislation. According to The Wall Street Journal , the company has told the South Korean government that its current policies are in line with the law. The Journal notes that the exact wording of the legislation may allow for some wiggle-room for Apple. The law doesn’t directly regulate commissions but says that apps must not be forced to choose a specific payment method because of unreasonable fees.