Google Clinging to High Fees

Content providers are opposed to Google’s high fee policy.

Google announced that it would allow third-party payment to comply with the Telecommunications Business Act. However, the third-party payment fee is just 4 percentage points lower than the fee applied to its in-app payment. In other words, Google is planning to receive high fees in any way.

At present, Google’s in-app payment fees are divided into 30 percent, 15 percent and 10 percent. The company recently announced to developers that the third-party payment fee would be 26 percent, 11 percent or 6 percent.

Content providers are opposed to this policy. Google’s 30 percent fee paid in apps is currently mandatory only for game apps and fee payment methods can be freely selected when it comes to the other apps. Content providers that are not game developers can opt to pay fees based on in-app payment or opt not to pay fees using their own payment methods. However, according to Google’s recent announcement, 6 percent to 26 percent fees will become mandatory regardless of payment methods. They are also claiming that the difference of 4 percentage points is meaningless in view of the additional card fees for third-party payment.

“Google is pretending as if it is giving more options to developers and users, but nothing has changed regarding its high fees,” Democratic Party of Korea lawmaker Jo Seoung-lae pointed out. The Korea Communications Commission said that it would keep monitoring Google’s fee policy.