Google Delays 30% Commission Increase Until September Next Year

Delay in Applying New App In-App Purchase Fees
Postponed Until End of September Next Year, Same as Existing Apps

[Asia Economy Reporter Koo Chae-eun] Google has postponed its plan to impose a 30% commission fee on new apps, originally set to take effect in January next year, to September 30 of next year. The initial application date for the new app commission increase was January 20, but it has been decided to delay it by more than eight months. This appears to have been influenced by Apple's sudden commission reduction policy and persuasion from the National Assembly.

According to industry sources on the 23rd, Google decided to change the Google Play payment policy announced last September and postpone the in-app payment policy and 30% commission fee for both new and existing apps until September 30 of next year. This decision by Google was made following consultations and continuous urging among Lee Won-wook, chairman of the Science, Technology, Broadcasting and Communications Committee, Cho Seung-rae, Democratic Party secretary, and Park Sung-joong, People Power Party secretary.

Lee Won-wook, chairman of the National Assembly's Science, Technology, Broadcasting and Communications Committee, said, "I welcome Google's decision," adding, "I hope Google will establish a healthy domestic app ecosystem through a commission reduction policy comparable to Apple's 15% commission cut." Chairman Lee particularly emphasized, "Considering Google's influence in the market, it should actively foster a healthy mobile app ecosystem by supporting the growth of small and medium app developers," and said, "Together with the committee members, we will closely monitor to ensure that domestic app developers and app users are not treated unfairly."

The National Assembly's Science, Technology, Broadcasting and Communications Committee plans to continue discussions on legislative directions after consultations with domestic app developers, while urging Google headquarters to reduce commission fees to prevent harm to domestic app developers.

An ICT industry official explained, "As Apple has begun to implement its commission reduction policy in earnest, Google also needed to take action," adding, "From Apple's perspective, it was a choice that ensured fair treatment for small and medium developers while also alleviating the burden of the immediate passage of the amended Telecommunications Business Act."

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