Seoul : Facing backlash from developers, Google said on Monday that it will postpone enforcing a 30 per cent 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 per cent commission on all digital content purchases by users from app developers .Like Apple, Google also collects a 30 per cent commission on in-app purchases.
Apple last week announced it will reduce the standard commission on its App Store from 30 per cent to 15 per cent 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. While Google has taken a 30 per cent 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 percent of those that sell digital goods already use Play’s billing system. It added that just 2 per cent 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.