Google has formulated a plan to apply a 30% fee to the payment amount for all apps and content sold in its app marketplace. It is explained that it is a policy for the entire app ecosystem, but it also appears to be ``appropriating'' the industry by releasing a support plan worth 151 billion won for domestic content developers.
On the 29th, Google held an online media briefing with the domestic media, saying, "If you provide in-app payment (IAP) for digital goods among apps distributed through Google Play, you must use the Google Play payment system."
Purnima Kochikar, head of global game and app business development at Google Play, who attended the event, said, “98% of Korean developers are already following Google's policy. Said.
30% commission on all payments in the app
In-App Purchase refers to using the payment system of app marketplaces such as Google and Apple when paying for paid products in the process of downloading and using a smartphone app. Previously, Google obligated in-app payment only for games, and non-game apps such as music and webtoon allowed the developer's own payment system.
However, in the future, Google Play in-app payment is mandatory. As a result, a 30% fee will be added to virtually every amount paid on Google Play. When this policy is implemented, content companies will be burdened with fees. It is also highly likely that the increased commission will be reflected in consumer prices. This is why the domestic internet industry and consumer organizations are opposing Google's policy by calling it an'app toll'.
Google “Naver and Kakao overseas expansion success is also thanks to Google payment”
Google has repeatedly emphasized that the Google Play payment system has laid the groundwork for domestic companies such as Naver and Kakao to enter the global market. “Google Play is helping to provide apps and content to 2 billion users in 190 countries, and to make payments in local currency easier,” said Coach Car. “Kakao's Piccoma It would have been difficult for Naver's LINE Manga to succeed in the Japanese market without Google Play's payment system.”
The argument is that Naver and Kakao use separate payment systems in Korea due to market conditions, but use Google Play payment systems overseas. The success of Piccoma and Linemanga was also possible because it was able to provide a safe environment to Japanese users through the Google Play payment system without the need to build a complex system in accordance with Japanese authorities.
“The important thing in the Android ecosystem is openness,” he said. “There are various app marketplaces that can be an alternative (Google Play) such as Galaxy Store and One Store.” He added that users can freely inform users about payment methods other than in-app payment, such as bypass payment on the web.
As for the reason for collecting the fee, “The developer can do global business (via Google Play), and from the user's point of view, the security can be paid in a trusted system. Fees are reinvesting for the entire ecosystem. As it is an investment for'sustainability', I would like to emphasize that it has a significant advantage for consumers.”
“ Investment of '100 million dollars' in Korean developers”
Google also announced that it will run a'K-reate' program worth 115 billion won ($100 million) over the next one year to develop the Korean digital content ecosystem. It plans to provide support for digital content developers such as webtoons, web novels, music streaming, and e-books, as well as users with a wide range of benefits, including price cuts.
Min Kyung-hwan, general vice president of Google's Android app and game business development in Korea, said, "The commission is also received only when sales are generated first." It plans to lower the purchase barrier and support marketing. “We will collect opinions in the direction that is most helpful to the digital ecosystem.”
The policy enforcement time is January 20, 2021. Google has decided to apply a grace period until September 30 next year for existing registered apps due to'technical work required for payment system integration'.
Meanwhile, according to the '2019 Mobile Content Industry Status Survey' published by the Ministry of Science and ICT and the Korea Mobile Industry Federation, Google Play sales recorded 5,999.6 billion won last year. This corresponds to 63.4% of the total domestic app market sales.
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