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Google Play allows the use of third-party payment systems

Google accepts to comply with Korean law by allowing developers to use third-party payment systems and not to pay commissions.

Outside a Google building in the US.  Photo: Engadget

Outside a Google building in the US. Photo:Engadget

However, Google still charges a service fee for developers if they want to operate on the Play Store. This fee is 4% lower than using the entire Google payment system and service. In which, e-book and online music developers have to pay 6% of revenue to Google instead of 10% as before, normal app developers have to pay 11% and popular app developers is 26%.

Wilson White, Google’s director of public policy, said the company still needs to charge a fee to continue investing in Android and the Play Store, as well as developing developer tools and security research.

The Korean regulator has not yet commented on Google’s new move.

Previously, the National Assembly of Korea passed a new law on telecommunications business on August 31. The law, also known as the “anti-Google law,” prohibits market-dominating app store owners from forcing app developers to use their proprietary payment system.

This is the first time a major economy has enacted a law to restrain technology “giants” such as Apple and Google. These companies have faced a wave of global criticism for forcing developers to pay a 30% “commission” fee and complicated conditions if they want to do business on the App Store and Play Store.

While Google is complying, Apple is still delaying adjusting its App Store payment policy. An official with the Korea Communications Commission said the law took effect in September, but Apple told the South Korean government that it had complied with and did not need to change anything.

The regulator will require Apple to come up with a new policy, granting greater autonomy to app developers, as well as buyers, in payment methods. If Apple does not comply, South Korea will investigate and impose penalties.

Huy Duc (follow Reuters)

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