Apple and Google may face trouble as startups seek probe on their in-app purchase system. A new report from the Korean Herald has revealed that various startups from South Korea are banding together to call for an investigation against Apple and Google. The probe would be for both tech giants’ in app purchase systems.
The group between the various developers and small scale companies have submitted a petition to the Korea Communications Commission earlier this week. In the petition, the group sought an investigation against both Apple and Google, which may be violating South Korean laws regarding in-app purchases and anti-competitive behavior. They said that Apple has been forcing developers to use their proprietary in app purchase structure since 2011.
This payment structure has Apple take a 30 percent cut off the total expenditure as commission. Similarly, Google demands the same from gaming application, requiring them to use its own in app purchase system for games on its platform. According to Choi Sung-jin, President of the Korea Startup Forum, “While the 30 percent commission rate is too high in itself, it is more problematic that they force a specific payment system for the app markets.”
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