Google demands 30 percent cut from all apps and content

Google has decided to demand a 30 percent cut of payments made within apps offered by the Google Play store from next year. It is expanding its 30 percent cut policy from gaming apps to all apps. The policy change is causing concerns that it may put more burden on small and medium-sized developers and push up the price of apps such as music and webtoon apps. 　

Google announced Monday (local time) on its blog that it would demand its payment method (in-app purchases) to all apps offered by the Play Store from next year. New apps have to pay 30 percent of in-app purchases from January 20, and existing apps will be applied with the new policy from October 1 next year.

Domestic content businesses are up in arms about it. Businesses other than game developers including music, video, e-book, webtoon companies have only paid some 10 percent by circumventing the policy by making users pay them directly.

“A 30 percent cut is way too much for startups,” said Choi Seong-jin, head of the Korea Startup Forum. “It’s concerning because many startups may lose opportunities.”


Keun-Hyung Yoo noel@donga.com