Popular South Korean app caves to Google’s billing requirements
Those following the Google Play Store billing changes and lawsuits might remember a law that went into effect in Korea last year, requiring that Google allow app developers in that market to offer third-party payment options. However, that’s not a free pass to cut Google out entirely. In exchange for access to its platform, Google still wants a cut, whether you’re using its billing system or someone else’s. A few weeks ago, the popular (in South Korea) KakaoTalk app, featuring over 100 million installs on the Play Store, was prevented from updating its app since it didn’t honor this requirement by directly linking to a storefront where Google made nothing. However, KakaoTalk will now give in to Google’s requirements.
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Last fall, South Korea adopted a change widely called the “Anti-Google law” thatrequired Google to accept alternative billing systems alongside its ownso that developers have a choice. However, Google still imposes two requirements if developers take that route: Google’s billing system must remain an option alongside whatever other alternates you add, and Google still needs to take a cut (though it will accept a slightly reduced rate to offset other billing fees).
KakaoTalk elected to include a link in its app directly to its website, allowing customers to circumvent in-app billing entirely to make purchases, which flouts Google’s rules. As a result,Google began blocking updates to the appa few weeks ago, leading to today’s development.
Kakao (the company behind KakaoTalk) confirmed toTechCrunchyesterday that the external link it previously provided for payments will be removed so that it can return to updating its app on the Play Store. As noted by TechCrunch, this could have been an attention-seeking maneuver, as the KCC (Korean Communications Commission) isreportedly investigating the act.
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