"Subscription App Fees Cut from 30% to 15%..." Google Backs Down Amid Abuse of Power Criticism

[Image source=Reuters Yonhap News]

Google, which has been globally criticized for its commission abuse, has backed down by halving the subscription fees for applications (apps).

On the 21st (local time), Google announced on its developer blog that "starting January next year, the service fee for all subscriptions on Google Play will be reduced from 30% to 15% from day one." Previously, Google charged a 30% commission on app subscription fees from app developers in the first year, and 15% thereafter. With this measure, the subscription-based app commission rate will be uniformly 15% from the first year. Subscription services include media apps such as news and streaming, as well as dating apps. Google explained, "For developers offering subscriptions, the subscription fee in the first year will be halved."

Earlier, Google expanded the mandatory in-app payment system, which was only applied to games, to content apps such as webtoons, music, and videos, and announced a policy to charge a 30% commission on payment amounts, sparking global controversy over abuse of power. The domestic IT industry also strongly opposed Google's measures.

Accordingly, the Korean National Assembly passed an amendment to the Telecommunications Business Act, known as the 'Google Abuse Prevention Act.' The act prohibits app market operators from unfairly using their position to force mobile content providers to use specific payment methods. Korea became the first country in the world to regulate the mandatory in-app payment system imposed by app market operators. After the passage of the amendment, the Korea Communications Commission also took strong regulatory measures, such as proposing to impose a fine of 2% of sales if Google or Apple force the use of in-app payment methods.

In the United States, as controversy over Google's excessive fees intensifies, antitrust lawsuits are underway. In July, prosecutors from 36 states in the U.S. filed an antitrust lawsuit against Google. Following the U.S. Senate, the House of Representatives also introduced a bill to ban mandatory in-app payments.

Under comprehensive pressure from governments worldwide, Google has also lowered the commission rates for e-books and music streaming services to a minimum of 10% in an effort to appease public opinion. However, Google's new policy is limited to subscription services, and the existing 30% commission policy related to in-app payments remains unchanged. Game apps that use in-app payment methods are expected to be largely unaffected by this measure. Foreign media such as Bloomberg predict that "Google's move will increase the number of app developers switching to subscription services."

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