S. Korean tech firms urge lawmakers to stop Google from using own billing system

South Korean online companies urged lawmakers to pass a bill restricting Google's planned enforcement of its billing system.

Google's plan to require all app developers on its Play store to use its billing system is opposed by app developers that have dodged Google's fee by using other payment systems.

The tech giant announced earlier this week that it would reduce its commission from 30 to 15 percent for the first US$1 million of revenue a developer earns annually beginning July.

However, the Korea Internet Corporations Association said Google's latest move still undermines fair competition by forcing developers to use the company's billing system.

The association called Google's fee reduction as a temporary remedy since it ignores the essence of the issue, and called upon the National Assembly to restore fair competition through revisions to the Telecommunications Business Act."

Google insists that its service fee is used for reinvesting in its platform and that its latest move will reduce fees by 50 percent for 99 percent of developers worldwide.

Lee Won-wook, a ruling party lawmaker and the chairman of the committee reviewing the bills, said he respects Google's decision but called for more efforts to ensure fairness in the market.

Google's rival Apple Inc. also lowered its App Store's commission by half for developers that earn up to $1 million annually from the start of this year.

App sales on Google's Play store in South Korea last year were estimated at over 5 trillion won.