Amid Google's 'Commission Abuse' Controversy... Native One Store "50% Discount for Small Businesses"

[Asia Economy Reporter Seulgina Jo] One Store, a native app market, announced a groundbreaking commission reduction policy to promote coexistence with small and medium-sized enterprises (SMEs). This move contrasts with Google Play, which holds nearly 70% of the domestic market share and has been criticized for so-called 'commission bullying.' It is interpreted as an effort to foster the development of the domestic digital content industry while solidifying its market position as a native app market.

One Store announced on the 8th that it will reduce commissions by 50% for businesses with monthly transaction amounts of 5 million KRW or less until the end of 2021. This applies immediately to all content listed on One Store, including games and apps. Benefits will also be applied retroactively to content transactions that occurred in October 2020. One Store explained, "This decisive decision aims to support SMEs and individual developers struggling due to the prolonged COVID-19 pandemic and to promote the development of the domestic industry through coexistence."

The number of companies and developers who will immediately benefit from this commission reduction policy is estimated to be around 16,000. One Store stated, "A significant portion of companies engaged in mobile game and app development in Korea are included," adding, "The number of eligible companies will increase further as more businesses join."

This announcement is particularly noteworthy as it comes amid global controversies over excessive app commissions charged by global app market giants like Google and Apple.

One Store, launched in 2016 through a collaboration between the three major telecommunications companies and Naver, currently charges a 20% app commission, which is much lower than Apple and Google's 30%. It also does not force in-app payments, which have become an industry norm. Rather, since July 2018, it has implemented a groundbreaking policy reducing commissions to 5% if developers use their own payment systems.

On this day, One Store also disclosed the status of companies currently using their own payment systems among the developers listed on the platform. As of September, the number of companies using their own payment systems increased sevenfold compared to the same period in 2018. Transaction volume increased 200 times. One Store has also recorded transaction growth for eight consecutive quarters. The coexistence between developers and the app market platform has created a 'win-win' effect and established a virtuous ecosystem.

Lee Jaehwan, CEO of One Store, said, "One Store is proving that as Korea's representative app market, it can simultaneously achieve coexistence within the domestic industry and corporate growth," adding, "We hope this policy will strengthen the roots of the domestic industry and help Korean companies advance onto the global stage."

Meanwhile, starting next year, Google will mandate the use of Google's payment method (in-app payment) for app developers listed on Google Play when selling content and items, taking a 30% commission in the process. Unlike the Apple App Store, Google is expanding its commission policy, which had previously applied only to games, to all content and apps. This is expected to increase the burden on app developers and inevitably lead to price hikes for consumers, fueling concerns and spreading controversy over 'app tolls.'

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