S. Korean lawmakers push ahead with legislation restricting Google's imposition of in-app billing system
South Korean lawmakers from the ruling Democratic Party pushed forward the proposed amendments to the Telecommunications Business Act restricting app market operators such as Google and Apple Inc. from unfairly using its position to force payment systems on app developers.
Legislators from the main opposition People Power Party abstained from the committee meeting pushing for the amendments due to concerns that the bill could spark tensions with the US as it mainly targets American companies Google and Apple.
The amendment would address complaints from local app developers and content creators over high fees.
Local tech groups are strongly opposing Google's move to impose its billing system on all app developers on its Play store from October this year, which would result in collecting a 30 percent commission for all in-app purchases of digital goods.
Last week, Google pushed back the enforcement of its new billing policy to the end of March next year for developers that request a delay.
The tech giant also lowered its Play store commission to 15 percent for the first $1 million app developers earn in revenue beginning this month.
Apple, which collects a 30 percent commission on in-app purchases on its App Store, has reduced its fee by half for developers that earn less than $1 million annually at the start of this year.
Sales from the Play Store in South Korea were estimated at 5 trillion won last year, accounting for two-thirds of the country's total, with Apple's App Store only selling at 1.6 trillion won.