South Korea: Google violates law by not allowing third-party payment methods

The South Korean telecom regulator KCC concludes that Google is breaking the law by not allowing external payment methods in the Play app store. Several app developers have been forced to remove links for third-party payment methods from their apps at the insistence of Google.

Since Friday, Google has been requiring certain developers to remove external links to alternative payment methods from their apps. The company says the presence of the links goes against the policies of its app store. Through the links, the developers would avoid the commission they have to pay. The warned developers cannot update their apps while the external links are still there. If the apps do not meet Google’s requirements after June 1, they will be removed.

According to the KCC, Google is not allowed to demand this and the company is against South Korean law, writes The Register. Anything that denies consumers access to an alternative payment system is prohibited, according to the watchdog. In addition, links to external payment systems are permitted by law. The KCC will soon make a final decision on the case. In addition, it will look at what measures it can take against Google. The company could be fined 50 million won (37,686 euros) if it does not cooperate with the investigation of the telecom regulator, writes The Korean Herald.

Since March 15, tech companies have been required to allow alternative payment methods in South Korea. The regulation, which was adopted last year, should prevent app store providers such as Apple and Google from obliging developers to use their payment system and have to pay commissions for this. Companies that fail to comply with the law can be fined 2 percent of the average annual turnover from “related business activities.”

Update, 20.21: The original article stated that Google could be fined 50 million won, which amounts to 37.6 million euros. However, the converted amount was incorrect and must be 37,686 euros.