Criticism is growing against Google and Apple for taking a commission of up to 30% from application (app) market fees charged to game developers. As domestic companies affected by this are currently in the process of suing Google and Apple in the U.S., a policy forum was held on the afternoon of 5th at the National Assembly in Yeouido, Seoul, to share cases of in-app payment damage and discuss alternatives.
The forum was co-hosted and managed by Chairperson Choi Min-hee of the National Assembly's Science, Technology, Information, Broadcasting and Communications Committee, and Secretary General Kang Jun-hyun of the National Policy Committee, along with the Korea Game User Association and the People's Solidarity for Participatory Democracy. Representatives from domestic affected companies, the Korea Mobile Game Association, Korea Game User Association, and the Korea Game Developers Alliance also attended. Earlier, it was reported that the organizers requested the attendance of Google Korea and Apple Korea, but they did not show up on that day.
The gaming industry argues that app market operators such as Google and Apple impose exorbitant fees, increasing their expense burden. In-app payment refers to a method that restricts payments for paid content within the app to Google's or Apple's payment systems only. Google and Apple take a commission of up to 30% for in-app payments in exchange for allowing app developers to list their apps for download on their own platforms like 'Play Store' and 'App Store.' Developers have no choice but to pay the fees, as Google and Apple monopolize the app market.
Additionally, while Apple and Google allow external payments, they separately impose a commission of about 26% in the name of privacy protection. Affected companies must pay a fee of 5-10% to external payment gateway (PG) companies for third-party payments. Ultimately, the amount they bear is similar.
Game developers have reported that if they challenge Google and Apple, their app reviews may be delayed or their apps may be unjustly removed. Companies wishing to report unfair practices or claim compensation are found to be hesitant to come forward due to fear of retaliation. Some domestic companies are currently conducting class-action lawsuits against Google and Apple in the U.S.
Christopher Lapsok, a lawyer representing domestic companies locally, emphasized, "The commission that Google and Apple impose on in-app payments is at least two to three times higher than the level that would be possible in a market with fair competition and no illegal activities." He further noted, "According to internal analysis from Google and Apple, they believe that there is no incentive to lower the in-app payment commission, even though it is possible to set a lower rate, due to the absence of competitive pressure."
In Korea, there are calls to amend the existing law that prevents forced in-app payments. In Korea, the 'In-App Payment Prohibition Law' was enacted in 2021, but its impact on the field has been minimal. Recently, a new bill was proposed, titled the 'Bill to Prohibit Retaliation by App Market Operators (Amendment to the Telecommunications Business Act).' The bill includes provisions to impose triple punitive damages on those who report forced in-app payments if retaliation occurs.
Chairperson Choi, who proposed the bill, emphasized that institutional measures must be strengthened to ensure that corporations can report unfair practices without fear and receive their rightful protections.