Google and Apple '30% App Toll' Controversy... Consumer Harm Inevitable

[Asia Economy Reporter Seulgina Jo] Conflicts are intensifying over the commission policies of Google Play Store and Apple App Store, which occupy about 90% of the domestic application market.

Following Apple, Google is also actively pushing the so-called '30% app toll,' raising concerns that it will directly impact not only domestic app developers but also consumers. Overseas, Apple has expelled game companies that opposed its commission policy from the App Store, leading to legal battles.

According to industry sources on the 15th, Google is currently taking a 30% commission only on games and allowing partial self-payment for other apps, but it is planning to change this policy to charge commissions on all in-app payments like Apple. Although the introduction timing has not been finalized, it is reported that Google recently explained the commission policy to domestic content companies.

Similar to Apple, if Google imposes a 30% commission on all apps, the usage fees for content such as videos, music, and webtoons for users of smartphones equipped with Google's operating system (OS) will inevitably increase by 20 to 30%. This raises concerns as it threatens the survival of app developers and could lead to consumer harm. An industry insider explained, "To purchase one Naver Webtoon usage ticket (cookie) priced at 100 won in the App Store with commission fees, consumers have to pay 120 won."

The policy change of the Play Store, which dominates the domestic app market, inevitably leads to pressure for product price increases, decreased operating profits, and increased consumer damage. Moreover, more than six out of ten domestic content companies are classified as small businesses in terms of operating profit, making them vulnerable to the commission policies of the powerful app market giants.

App developers, who are in the position of the weaker party, find it difficult to openly oppose. Even Naver, the largest internet platform company in Korea, had its updates suspended on the Apple App Store in 2017 due to having its own payment system. An industry insider sighed, "It is not easy for app developers to raise issues against platform giants like Google and Apple."

The Apple App Store is taking a tough stance against companies opposing its commission policy. On the 13th (local time), Epic Games, the maker of the popular game 'FORTNITE,' built an in-app payment (IAP) function that allows users to purchase items directly within the game in protest against the App Store's commission policy. Apple announced plans to expel the company, citing a violation of payment guidelines.

In the statement Apple released immediately after the expulsion, it included the content that "Epic Games has benefited from the App Store ecosystem, including tools and testing provided to all developers for over 10 years, and has agreed to the App Store terms and guidelines." On the other hand, Epic Games criticized, stating in its complaint, "Apple controls the market it once fought against and blocks competition," calling it "a giant choking innovation."

The commission conflict between app market giants and the content industry is expected to escalate further. Epic Games has sued Apple, and Spotify has also expressed support for Epic Games. There is speculation that the power struggle between the platform industry and the content industry will intensify.

Domestically, the government and political circles are showing movements to respond to the commission policies of app market giants. Relevant ministries such as the Ministry of Science and ICT and the Korea Communications Commission are reviewing whether the commission policies of both companies violate laws. Park Sung-joong, a member of the Future United Party and the secretary of the National Assembly's Science, Technology, Information and Broadcasting Committee, introduced a partial amendment bill to the 'Telecommunications Business Act' on the 11th, which prohibits app market operators such as Google and Apple from arbitrarily imposing commissions. However, there are growing concerns in the industry that it will not be easy to enforce actual regulations.

This content was produced with the assistance of AI translation services.