[Google denies app deletion from June if in-app payment is not applied
Apple remains silent on its implementation plan for 6 months… Awareness of concerns about the KCC industry]
/Photo = News 1 The worlds first app market ‘In-App Payment Compulsory Prevention Act’is in danger of becoming useless. Apple has not revealed a specific implementation plan for six months after the law came into force in September last year, and Google also issued a notice prohibiting it the day after the enforcement ordinance went into effect, “Allow outlink payment systems.” In the mobile content industry, “The feared forced in-app payment has become a reality” and wept.
According to the industry on the 18th, Google told domestic app developers on the night of the 16th, “If you do not delete its own payment system, you cannot submit app updates from April 1, and apps that do not comply with the policy by June 1 will be They will all be deleted from play.” Googles △In-App Payment △In-App Payment will not allow other payment systems except for third-party payments.
Google announced this policy right after the Korea Communications Commission implemented the amendment to the Enforcement Decree of the In-App Payment Compulsory Act on the 15th. Earlier, the Korea Communications Commission (KCC) said, “We accepted the opinion to explicitly ban app market actions that prevent app developers from guiding and promoting other payment methods through outlinks, etc.” The act of making it difficult or inconvenient to ‘access’to Sudan has been added as a prohibited act on the App Market.
Google hit the KCC decision head-on. In response to the question “Can the app developer guide the user to a separate payment method?”, Google answered, “Directly link to a web page that can be linked to other payment methods within the app, or You must not do anything that uses language that encourages you to purchase digital goods.” ‘You can buy directly from the website’ It is a policy that only phrases such as such can be provided.
Regarding this, an industry official said, “In fact, Google did not recognize the enforcement ordinance of the Korea Communications Commission.” “Mobile apps are regularly updated at least twice a month, but the fact that the app market blocks this means that you dont actually do business.” ; he said. Another official said, “I liked that the worlds first in-app payment enforcement prevention law was passed, but nothing has changed, so Im disappointed.”
/Photo = Google Play Console customer center capture
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I was told not to force in-app payment ‘ fee bomb’… Industry ‘Dongdong’
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In the meantime, mobile content apps have used the mobile web payment method using the payment system of an electronic payment service provider instead of Googles in-app payment. In this case, no in-app payment fee is charged. However, Google has announced that it will apply in-app purchases to all content apps in 2020 and receive a 30% commission. The policy has been suspended until the end of this month.
When the In-App Purchase Compulsory Prevention Act was passed in Korea, Google announced that it would allow third-party payment services. However, this is not the existing mobile web payment, but a method in which the developer adds a separate payment system within the in-app payment system. The fee is also reduced by only 4%p compared to the existing in-app payment. Even if you use an external payment, you have to pay the price for using the App Market.
App developers protest, saying ‘Googles trick’. If you add PG and card fees to the third-party payment fee, it will exceed 30%, effectively forcing in-app payment. This is the background to the request to put a clause in the Enforcement Decree stating that an outlink payment system can be introduced.
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The Korea Communications Commissions ambiguous interpretation of the law… Post-regulatory limits
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A view of adding a third-party payment to Googles in-app payment system. In this case, a fee of up to 26%, which is 4%p cheaper than in-app payment, is applied. /Photo = Google Play Korea Communications Commission accepted the industry request and ‘access’ Although the phrase was inserted, the majority of evaluations were still “ambiguous”. The Korea Communications Commission also cannot conclude that “outlink method is possible”. At a meeting of the Regulatory Reform Committee last month, the Korea Communications Commission only said, “As a result, the fee for in-app payment will be lowered, which will result in unfairly forcing I-app payment, etc.”
As the In-App Payment Compulsory Prevention Act is an ex post regulation, the Korea Communications Commission may impose sanctions later. An ICT lawyer said, “It is questionable whether the phrase “access affects whether or not outlinks are allowed”, but “when the app market bans outlinks, whether it goes against the purpose of the In-App Payment Compulsory Prevention Act, etc., will be investigated by the KCC. It is a part that can be sorted out by interpretation while checking through it,” he said.
Professor Choi Kyung-jin of Gachon University Law said, “Due to the limitations of post-regulation, the Korea Communications Commission can determine whether the law has been violated only when specific damage occurs to the app developer after Google applies the payment policy.” It will not be easy to judge,” he said. “There are some limitations as the legislative intent is not to allow all payment methods that app developers want,” she added.
The method of calculating fines is also ambiguous. The Korea Communications Commission has decided to impose a fine of up to 2% of related sales if the app market forces in-app payment. Considering that value-added telecommunication service providers such as Google usually pay 1% of their sales as a fine when they violate the Telecommunications Business Act, this is proof that the Korea Communications Commission is taking the matter seriously. However, the KCC has not given a clear answer on how to calculate related sales.
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Google-Domestic company litigation expected
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The possibility of filing a lawsuit against Google is being discussed in the mobile content industry. An industry insider pointed out that “the word ‘access’ causes confusion” and “we have no choice but to decide whether Google’s payment policy is in accordance with the revised bill with a lawsuit.” He added, “It would be nice if the Korea Communications Commission stepped in, but since this is the worlds first case, the Korea Communications Commission will also be cautious about conducting a fact-finding investigation or imposing a fine.”
Professor Choi also said, “The key is whether Googles payment policy meets the purpose of the amendment.” Even if the Korea Communications Commission imposes a fine on Google, it will not go to court,” he predicted.
The Korea Communications Commission said, “We are aware of industry concerns and are discussing with Google and Apple.” Apple is also considering whether to initiate a fact-finding investigation. When Google inquired whether the outlink method was not allowed, Google said, “There is no content that can be shared other than the announced content.”
