Google Gives In to the 'Gapjil Prevention Law'... Moves to Lower In-App Payment Fees

[Asia Economy Reporter Kang Nahum] It has been confirmed that Google has conveyed to the National Assembly its intention to reduce in-app payment fees.

According to the Science, Technology, Information and Broadcasting Committee of the National Assembly on the 23rd, Google initially planned to raise the fee up to 30%, but has communicated to some committee members that it intends to lower the fee to about half that level. A representative from the office of Assemblyman Han Junho of the Democratic Party of Korea stated, "Google expressed its intention to reduce the fees more significantly than Apple's reduction level," adding, "The target and scope of the reduction have not yet been decided, and discussions are ongoing with the headquarters."

Earlier, Apple announced in November last year that starting this year, it would reduce the app market fee from the existing 30% to 15% for app developers with sales under 1.1 billion KRW.

This change in Google's stance appears to be due to legislative pressure from the political sphere, such as the so-called 'Google Gapjil Prevention Act.' On the same day, the Science, Technology, Information and Broadcasting Committee held a subcommittee meeting to begin discussions on the amendment to the Telecommunications Business Act, which includes a ban on Google's forced in-app payments. The committee plans to integrate and coordinate six separate amendment bills to the Telecommunications Business Act proposed by both ruling and opposition parties and prepare a committee alternative.

The burden on the industry due to Google's monopolistic position is clearly revealed in a survey conducted by the government. According to the results of a survey on Google's in-app payment policy submitted to Assemblyman Cho Seung-rae of the Democratic Party of Korea by the Korea Communications Commission, 37.8% of the 315 app operators who participated in the survey reported experiencing app registration refusals, review delays, or deletions.

Among these, app registration review delays accounted for the highest at 88.2%, followed by app registration refusals at 44.5%, and app deletions at 33.6%. Notably, the app market where app developers experienced registration refusals and similar issues was the Google Play Store at 65.5%, the largest proportion.

Cases where app registration refusals and similar actions were taken without separate explanations were reported as 17.9% for Google Play Store and 8.7% for Apple App Store, respectively.

In a prior survey by the Ministry of Science and ICT, it was analyzed that if Google's forced in-app payment and 30% fee policy are implemented, fees in the non-game sector this year could increase by at least 88.5 billion KRW and up to 156.8 billion KRW.

Assemblyman Cho stated, "Following the Ministry of Science and ICT's estimation of the damage scale to domestic app developers, the Korea Communications Commission's survey revealed abusive practices such as app registration refusals and review delays by app market operators," adding, "Fundamental measures must be prepared to eradicate abusive practices exploiting the dominant position of specific platform operators."

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