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4 Nov 2021
Google to Authorize Third Party App Payment Systems in South Korea
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Alphabet's Google said on Thursday that they are planning to allow third party payment systems in South Korea in order to comply with the new law that forbids major app store operators from forcing software developers to use their payment systems.
Google's announcement comes after the Korea Communications Commission's (KCC) request for the U.S. tech giant to come up with compliance plans for the new law that went into effect in September, Reuters mentioned in their report.
Google said in a statement that, "We respect the decision of the National Assembly, and we are sharing some changes to respond to this new law, including giving developers that sell in-app digital goods and services the option to add an alternative in-app billing system alongside Google Play's billing system for their users in South Korea."
Google, which charges developers a 15% service fee for distributing apps, said it will reduce this to 11% when users choose an alternative billing system, recognizing that developers will incur costs to support their own billing system.
The KCC said Google's plans would be implemented this year and would only apply to South Korea.
KCC Chairman Han Sang-hyuk said, "We were able to confirm Google's determination to comply with the law, and I hope (Google) will implement this policy change in a way to reflect the legislative purpose of the revised law."
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