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An association of South Korean IT firms including Naver and Kakao has filed a complaint to the Korea Communications Commission (KCC) regarding Google’s plan to expand its 30% commission on purchases in its app store.

“We are concerned about Google’s plan to expand commissions for in-app purchases. We’ve reported that plan to the Korea Communications Commission based on our understanding that it violates Article 50 of the Telecommunications Business Act,” the Korea Internet Corporations Association, also known as K-Internet, said in a press release on Aug. 24.

The move follows a petition that the Korea Startup Forum filed with the KCC, asking it to investigate Google and Apple on Aug. 19.

Currently, Google only requires mobile games to use its proprietary billing system on the Google Play Store, Google’s app market. Google’s billing system is required both for buying the games and for in-app purchases made during gameplay, with Google collecting a 30% commission on purchases.

But since last month, the industry has been accusing Google of trying to extend its in-app payment policy to all apps on the Google Play Store. Google responded by saying it has not officially announced a plan to apply its billing system on a broader basis.

“Given Google’s overwhelming market share of 63.1%, a change to its payment policy would drive app developers using other payment methods out of the market and force consumers to pay more for their mobile content, which would harm users,” the IT firms said. Their argument is that higher fees in the app market would force app developers to raise their prices in order to remain in business.

K-Internet wants the KCC to address a number of specific questions; namely, whether Google is hindering the selection and usage of other telecommunications services by requiring apps to use its proprietary payment system, whether the usage of telecommunications services is being restricted without a legitimate reason, whether the terms of service were cancelled or important provisions changed without a legitimate reason, and whether Google was rejecting or limiting the appropriate distribution of profits by setting inappropriate conditions for transactions or making inappropriate changes to those conditions, including the fees it charges for handling payments.

In contrast with the Korea Startup Forum’s petition, K-Internet’s report to the KCC does not mention Apple. When asked about this, a spokesperson for K-Internet said, “We’re focusing on Google’s change of policy because we take issue with extending measures that thus far have only applied to some apps.” Unlike Google, Apple already applies a 30% commission to transactions on all applications on the Apple App Store.

By Choi Min-young, staff reporter

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