South Korean App Developers Start Raising App Rates Due To Google's New Policy

An app developer in South Korea raises the price of its app (photo: Unsplash)

JAKARTA - Some time ago Google said it would remove applications that do not comply with their policies from the Google Play Store, starting June 1.

Google has already started to enforce Google's billing system for all Android apps in the Google Play Store, but developers in Korea are excluded due to a new law passed in the country last year.

In response to a recent law, Google allowed developers to add an alternative in-app billing system, in addition to the Google Play billing system, for their mobile and tablet users in South Korea.

However, it seems, it did not go smoothly. According to media reports in Korea, content providers in the country are starting to raise consumer fees to maintain revenue while paying the required commission fees for the Google Play Store.

Google does exclude apps from using its billing system and pays sales deductions. Those who choose to pay through the Play Store must pay a 15 percent commission. Those who use Google-hosted third-party services must pay Google 11 percent.

To overcome Google's mandatory billing policy and substantial fees, South Korean app developers such as Kakao, Naver, and Ridi saw a 20 percent increase.

Streaming app Tving raised its subscription price by around 15 percent while similar increases were confirmed for streaming apps Wavve and Seezn.

The most inconvenient thing is that the price increase only applies to Android in-app purchases on the Google Play Store. Customers who download the service via a web browser or iOS app will pay the old price. With that, Google prohibits developers from linking Android users to non-Android payment portals.

The Korea Communications Commission (KCC, Chairman Han Sang-hyuk) announced that starting May 17, it will begin fact-finding examinations of app market operators such as Google, Apple and One Store regarding possible violations of prohibited acts under the Telecommunications Business Act.

The move was taken in response to a report from the Korea Publishers Association for filing a complaint that Google's changed payment policy unfairly enforced certain payment methods.