Google has decided to lower the commission fees for its Android app market, Google Play, from the previous rate of 30% down to a maximum of 20%. This change comes as a relief to many domestic game companies in South Korea, which have been struggling with high commission rates imposed by Google and Apple. The transition will see the commission rate divided into service and processing fees: a service fee between 15-20% and a processing fee of 5%. Specifically, the commission for new installations will now be set at 20%, while for existing installations, it will be 25%.

In addition to lowering the commission rates, Google is also making it easier for developers to implement external payment systems. Historically, both Google and Apple faced criticism for maintaining high commission rates by enforcing in-app purchases as the only viable payment method, charging between 26-27% for external payments. Samir Samat, who is in charge of Google’s Android ecosystem, stated that developers could now use their own payment systems within the app or direct users to purchase on external websites. These policy changes are set to take effect in regions including Europe and the United States by June, with implementation in South Korea and Japan expected by the end of December.

The response from the South Korean gaming industry has been predominantly positive, particularly among small and medium-sized game developers who hope for improved revenue as a result of this policy change. While large gaming companies have been developing their own payment systems to address commission issues, smaller developers have had to rely on the app marketplace for payment processing. Industry insiders believe that although the emphasis on self-pay systems will persist, the reduction in fees will have a significant positive impact on many games that lack this capability. There is also an optimistic hope expressed by industry members that Apple will follow suit.