Early this month, Korea became the first country in the world to introduce a law banning platform operators, like Apple and Google, from forcing their in-app payment systems upon developers. However, Google immediately came up with a policy to get around the regulation. The tech giant told app developers that it would not allow links to external payment pages and remove those not following the rule from its app marketplace, Google Play. It was aimed at blocking attempts to reduce commission fees.
Google's move runs counter to the amendment. In-app payment systems force customers purchasing apps, including mobile games, to pay only through the platform operators' system from which a commission is deducted. The revised law is aimed at preventing companies from creating platform monopolies. The U.S. Senate also passed a similar law recently.
Google claims that it is not a monopoly, stressing that it allows developers to apply alternative in-app payment systems. However, it has implemented a system that effectively forces developers to abandon that and adopt Google's in-app payment system. It set the commission rate of developers' in-app payment at 26 percent, not much different from the maximum commission rate of 30 percent charged for Google's in-app payments.
Considering the cost to developers, the structure disadvantages developers who build their own payment systems. It is nothing more than the exploitation of a loophole to get around the law, and market insiders predict Apple will soon follow Google's example. The Korea Communications Commission regards it as an apparent offense. The new enforcement decree of the Telecommunications Business Act clarifies the bill's purpose that external payments should not be blocked.
The situation will likely lead to a continuing legal battle. Last year, Google was slapped with a 224.9 billion won ($184.1 million) fine for forcing smartphone makers to use only the Android mobile operating system. It was also criticized for tricking major universities into using unlimited storage services and then switching them to paid ones. The current practices of Google are simply unfair.