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S. Korean lawmakers pushing to stop Google monopoly over in-app purchases
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'구글 인앱결제 방지법' 과방위 통과
South Korean content providers, like Naver and Kakao,... have been paying commissions to Google... for processing payments for in-app content.
But now local lawmakers are moving to stop to this... and give users a choice of payment systems.
Jang Tae-hyun provides a glimpse of possible changes.
Lawmakers in South Korea are trying prevent global tech giant Google's in-app billing system from holding a monopoly over in-app purchases.
They want to allow app developers to be able to offer their customers a range of payment methods.
The National Assembly's Science and ICT Committee on Tuesday held a meeting... and two-thirds of the members agreed to bring this legislation to a plenary session.
Google's in-app purchase system is used on apps downloaded through it's 'Play Store.'
"Previously, people could only purchase games through the Google app,... but the 'in-app purchase policy' will force people to pay for contents like music... only through Google's billing system."
The lawmakers are pushing for this legislation because from April next year, Google will start charging 30 percent commission on any purchases made through its billing system, from webtoons and e-books to music.
It currently only takes that commission from in-app purchases from games.
Google has over 70 percent of Korea's app market share.
It originally tried to apply the new payment rules starting from the end of September,... but has decided to make an optional extension until April.
"It means that extension will be given to companies that have applied for it. So, only companies that agree to Google's policy should apply. And start-ups unaware of this can't apply for it, and will see the new payment rules take effect from the end of September."
Korea isn't the only country taking on Google.
In the U.S., an antitrust lawsuit was lodged against Google by 36 states and Washington D.C. alleging the tech giant was abusing its power over app developers.
Jang Tae-hyun, Arirang News.
#SouthKorea #Google #lawmaker
2021-07-20, 22:00 (KST)
South Korean content providers, like Naver and Kakao,... have been paying commissions to Google... for processing payments for in-app content.
But now local lawmakers are moving to stop to this... and give users a choice of payment systems.
Jang Tae-hyun provides a glimpse of possible changes.
Lawmakers in South Korea are trying prevent global tech giant Google's in-app billing system from holding a monopoly over in-app purchases.
They want to allow app developers to be able to offer their customers a range of payment methods.
The National Assembly's Science and ICT Committee on Tuesday held a meeting... and two-thirds of the members agreed to bring this legislation to a plenary session.
Google's in-app purchase system is used on apps downloaded through it's 'Play Store.'
"Previously, people could only purchase games through the Google app,... but the 'in-app purchase policy' will force people to pay for contents like music... only through Google's billing system."
The lawmakers are pushing for this legislation because from April next year, Google will start charging 30 percent commission on any purchases made through its billing system, from webtoons and e-books to music.
It currently only takes that commission from in-app purchases from games.
Google has over 70 percent of Korea's app market share.
It originally tried to apply the new payment rules starting from the end of September,... but has decided to make an optional extension until April.
"It means that extension will be given to companies that have applied for it. So, only companies that agree to Google's policy should apply. And start-ups unaware of this can't apply for it, and will see the new payment rules take effect from the end of September."
Korea isn't the only country taking on Google.
In the U.S., an antitrust lawsuit was lodged against Google by 36 states and Washington D.C. alleging the tech giant was abusing its power over app developers.
Jang Tae-hyun, Arirang News.
#SouthKorea #Google #lawmaker
2021-07-20, 22:00 (KST)
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