'Commission Controversy' Google Lowers Fee from 30% to 15% up to $1 Million Revenue (Update)

Google headquarters sign in Mountain View, California, USA (AP=Yonhap News)

[Asia Economy Reporter Kim Heung-soon] Google, which has been embroiled in controversy over 'commission abuse,' has decided to reduce the app marketplace commission, currently at 30%, to 15% for certain revenue brackets.

According to industry sources on the 15th, Google Korea explained this commission reduction plan to members of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee. The proposal is to halve the commission to 15% for annual sales up to $1 million (approximately 1.135 billion KRW) generated on Google Play, while applying the existing 30% commission rate for sales exceeding that amount.

The new commission policy will take effect on July 1. Google's commission reduction stance goes a step further than Apple's. Apple plans to lower the commission to 15% only for companies with annual revenue under $1 million starting next year, but if the threshold is exceeded, a 30% commission is charged on the entire sales amount. Google stated, "99% of developers worldwide do not exceed $1 million in annual revenue on Google Play."

Previously, Google mandated the use of 'In-App Payment (IAP)' for all apps distributed on Google Play, collecting a 30% commission. In-App Payment refers to the internal payment system developed by Google and Apple, which allows paid apps and content in their app stores to be purchased using credit cards, various simple payment methods, or carrier micropayments in each country.

In response, the domestic IT industry strongly opposed this, and political circles also saw fierce backlash, including the proposal of amendments to the Telecommunications Business Act to prevent app operators from unilaterally imposing toll-like fees.

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