Let’s begin by saying how smart Google has been in this whole third-party payment options controversy with Apple and Epic Games. The only thing that has happened because of this enormous court battle between two technology giants is that other technology companies have learned their lessons and understood the loopholes from the decision. One such company is Google and it has been smart enough to tackle this issue in its own way, still making headlines.
According to recent reports, Google will allow Android app developers in South Korea to use third-party payment methods instead of Google’s own platform. However, there is a twist and developers will still have to pay a Google fee for availing this service.
Google is respecting South Korea and its norms relating to third-party payments and we can all understand why. As mentioned in a report by the Wall Street Journal, Google is ready to allow third-party payment options to Android app developers but only in South Korea. However, Google says that it would require the developer to checkout with a supporting application to get the choice of billing methods for the specific transaction. FYI, this would still mandate these developers to pay Google’s fees, as mentioned in the report by Engadget and The Wall Street Journal.
Google says that in South Korea, in order to facilitate third party payment methods for developers, it would cut the cost of its service charge by 4 per cent to help offset costs from running a separate bill. If the service cost was previously 10 per cent, Google would now charge 6 per cent, and if it were 15 per cent before, the new charges would be 11 per cent.
Why is Google still charging service fees and what would it say when the South Korean authorities will ask the same question?
Well, Wilson White, Senior public policy director at Google says that the company needed to take a cut in order to continue investing in Android and Play Store. This fee would help Google in keeping these services free. In addition to this, this service charge would allow the company to fund the advancement of Android, security and developer tools, as mentioned in a report by Engadget.
It is, however, unclear if the South Korean authorities will agree to Google’s proposal/approach, but for now, at least, Google has allowed developers to have third-party payment options for Android apps in South Korea.
Do you think this approach will work? Let us know in the comments below.