Google, which has penalized 'a mechanism to avoid Google's fee collection', receives a warning from South Korean regulatory authorities

South Korea's telecommunications regulator has told Google about a case in which Google has imposed penalties on apps that try to avoid the service fees set by the company in South Korea, which enforced a new law 'Allow third-party payment systems in app stores.' It was reported that he issued a warning saying, 'If we continue to do so, we will investigate the facts and impose a fine of up to 2% of Play Store sales.'

Google Loses Upper Hand on App Payments in South Korea --WSJ
https://www.wsj.com/articles/google-loses-upper-hand-on-app-payments-in-south-korea-11649168044

Google Can't Punish Devs on Payment Workarounds | PYMNTS.com
https://www.pymnts.com/google/2022/google-cant-punish-south-korean-app-developers-who-offer-payment-workarounds/

South Korea Says Apple, Google Banning Apps for External Payments Could Trigger Probes | iPhone in Canada Blog
https://www.iphoneincanada.ca/news/south-korea-says-apple-google-banning-apps-for-external-payments-could-trigger-probes/

Smartphone apps are distributed almost exclusively on the App Store for iOS and Google Play for Android, but when purchasing apps on the App Store or Google Play, the payment system is Apple / Google's. It is fixed to. In other words, it is a situation that 'If you charge a smartphone application, you have to use the payment system of Apple or Google', and Apple and Google have this situation and a mechanism that 'imposes a high usage fee on the payment system'. I was making huge profits using.

As Apple and Google's practices related to app billing continue to be criticized, in August 2021 South Korea enacted the world's first law prohibiting the 'forced in-house payment system' that Apple and Google continued. ..

Laws regulating Google and Apple app stores passed in South Korea, banning extortion of exclusive payment system-GIGAZINE

Following the enactment of this new law in South Korea, Google implemented a policy revision in November 2021 to allow third-party payment systems. Apple is also revising its policy in response to the establishment of South Korea and the outcome of the Apple vs. Epic Games proceedings .

Google Enables Third Party Payment System in South Korea-GIGAZINE

However, Google has set 'the service fee will be reduced by 4 percentage points' for apps that have introduced a third-party payment system in South Korea. In other words, even if the developer uses a third-party payment system, the fee will be lower, but the fee itself cannot be avoided.

Service Fees-Play Console Help
https://support.google.com/googleplay/android-developer/answer/112622

Korean app developers have countered this by implementing 'in-app links that call external websites where you can buy digital products,' but Google has reportedly updated these apps. It was said that it was banned from distribution and issued a warning to remove it from Google Play on June 1, 2022.

The Wall Street Journal, a major US news agency, has reported that 'Korean regulatory agencies have issued a warning to Google's response.' According to The Wall Street Journal, prohibiting app developers from implementing the above-mentioned in-app links that call external websites is a law enacted in August 2021 that prohibits coercion of in-house payment systems. It is in conflict, and the regulatory authorities have warned that if it continues to do so, it will conduct an audit and impose a fine equivalent to 2% of the sales generated during the violation period.

In addition, Apple has announced that it will charge a 27% commission on sales of third-party payments like Google, but the reaction of the Korean regulatory authority to Apple has not been reported this time.

Apple announces that it will charge a 27% commission on sales of third-party payments, anger and disappointment from developers-GIGAZINE