Google postpones 30% commission on in-app purchases to Sept

Google said it will postpone its decision on 30 percent commission on in-app purchases of digital content from its Play Store from January to September 2021.
Google South KoreaGoogle plans to take a 30 percent commission on all digital content purchases by users from app developers.

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

Google postponed the policy as it faced strong backlash from South Korean developers, reports Yonhap news agency.

While Google has taken 30 percent commission 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 percent of those that sell digital goods already use Play’s billing system.

Google added that just 2 percent 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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