Google to allow third party app payments in S.Korea

A 3D printed Google logo is seen in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration

SEOUL, Nov 4 (Reuters) – Alphabet’s (GOOGL.O) Google said on Thursday it plans to allow third party payment systems in South Korea in order to comply with a new law that bans major app store operators from forcing software developers to use their payments systems.

Google’s announcement comes after the Korea Communications Commission’s (KCC) request for the U.S. tech giant to come up with compliance plans for the new law that went into effect in September. read more

In late August, parliament passed an amendment to South Korea’s Telecommunications Business Act – dubbed the “anti-Google law” – banning big app store operators, such as Google and Apple Inc (AAPL.O) from forcing developers to use their payment systems, effectively stopping them from charging commissions on in-app purchases.

“We respect the decision of the National Assembly, and we are sharing some changes to respond to this new law, including giving developers that sell in-app digital goods and services the option to add an alternative in-app billing system alongside Google Play’s billing system for their users in South Korea,” Google said in a statement.

Google, which charges developers a 15% service fee for distributing apps, said it will reduce this to 11% when users choose an alternative billing system, recognising that developers will incur costs to support their own billing system.

It was unclear how…

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