South Korea has launched a competition investigation against Google, part of Alphabet. The reason is Google’s new app store policy, especially the commissions that the company charges for purchases within apps through its mobile applications.
Google wants to receive a 30 percent share for digital consumer purchases through its proprietary billing system. The new policy must enter into force in more than a year’s time.
South Korean app developers are strongly opposed to the measure. The scheme would be contrary to local laws on fair trade and telecommunications.
Google has a market share of over 63 percent in app stores in the country. Last year, the in-app sales were worth $5 billion in revenue. South Korean authorities are trying to see if they can pull together against Google.
In a counter-response, Google created a $ 100 million fund to support local app developers and users. But this fund was not approved by the Korean minister of ICT because it would do too little in the long term. The ministry will shortly present an overview of the rates applied by companies.