Google Delays Implementation of 30% App Transaction Tax... Criticized as a Loophole (Comprehensive)

[Asia Economy Reporter Buaeri] Google has postponed the implementation date of its new app policy requiring a 30% payment commission and mandatory in-app payments, which was originally scheduled for January next year.

Google Postpones App Toll Implementation Date

On the 23rd, Google announced, "In accordance with the recently clarified Google Play payment policy, the grace period for a small number of new content apps affected will be extended until September 30, 2021."

Initially, Google planned to apply mandatory Google Play in-app payments from January 20 for newly registered apps and from the end of September next year for existing apps.

This decision by Google came amid strong criticism from the domestic IT industry and followed Apple's announcement of a commission reduction policy. It appears that Google chose to delay the policy as an exit strategy under public pressure.

Google introduced a program worth 100 billion KRW to support the Korean digital content ecosystem and launched an app ecosystem coexistence forum composed of experts to appease domestic public opinion, but the situation continued to worsen.

The joint lawsuit legal platform "Hwanan Saramdeul" and attorney Jeong Jong-chae of the law firm Jeongbak, among the joint legal team, announced that they would submit a complaint to the Fair Trade Commission on behalf of app operators harmed by Google's in-app payment policy.

Apple's commission reduction also influenced Google's decision. As public opinion worsened regarding mandatory in-app payments and commissions, Apple announced a reduction of the App Store payment commission from 30% to 15% for developers earning less than $1 million annually, putting Google in a difficult position.

"A More Progressive Attitude Needed Rather Than Policy Postponement"

However, some criticized Google for merely employing a 'trick' by postponing the policy. An industry insider said, "This is not a commission reduction but just a policy postponement to temporarily calm public opinion," adding, "Doesn't this mean they will enforce the policy again once things settle down?"

There were also calls for Google to show a more progressive stance like Apple.

Members of the opposition Science, Technology, Information and Broadcasting Committee, including Park Seong-jung of the People Power Party, stated in a press release that "Google's policy should not just be postponed," emphasizing that "Google should make a more progressive decision than Apple's announcement, including commission reductions."

Meanwhile, Google said on the day, "We will continue to strive to create a healthy mobile app ecosystem" and "We will spare no support to help Korean developers grow and succeed in their businesses globally."

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