Google delays 30% in-app purchase policy

Facing backlash from developers, Google said on Monday that it will postpone enforcing a 30% commission on in-app purchases of digital content from its Play Store from next January to next September.

Under the new policy set to be adopted in late September, Google plans to take a 30% commission on all digital content purchases by users from app developers.

Like Apple, Google also collects a 30% commission on in-app purchases.

Apple last week announced it will
reduce the standard commission on its App Store from 30% to 15% for app developers with yearly proceeds of less than $1 million from next year.

According to market watchers, Google apparently postponed the policy as it faced strong backlash from South Korean developers, reports Yonhap news agency.

While Google has taken a 30% cut for all in-app purchases on the Play store through its billing system, some apps have circumvented the rule by using other systems, such as direct credit card payments.

The National Tax Service earlier said it will consider various measures to impose taxes on Google’s income from the fees and will closely monitor the tech giant’s revenue in the domestic application market.

Google has claimed in the past the policy change will not affect the majority of app developers, as nearly 97% of those that sell digital goods already use Play’s billing system.

It added that just 2% of South Korean app developers would be affected by the policy change.

Last week, a group of South Korean lawmakers called on Google to follow Apple’s move to lower its commission for app market purchases amid concerns of local app developers over high fees.

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