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|The South Korean government will inspect the commission charged by App Store and Play Store|
The South Korean government has most recently announced that it would perform an inspection of their App Store and Play Store for the high revenue-sharing rate under which about 30 per cent of the revenue goes into the giants’ wallets.
The act took place after several members of the Korea Startup Forum filed related petitions to the South Korean Ministry of Science and Technology.
Newswire The Korean Herald quoted the ministry’s representative as saying that the ministry will keep careful track of the platform providers and also prepare measures to cope with them. “We will also act as an intermediary between content developers and platform operators to ensure the rights of users.”
In the middle of August, Choi Sung Jin, chairman of Consortium, a member of Korean Startup Forum, said that while the 30 per cent commission rate is too high in itself. He explained that this is particularly unfair for small companies because larger firms may allegedly have the ability to negotiate their commission rates. Moreover, Apple and Google could decide to raise fees without consultation.
“It is more problematic that they force a specific payment system for app markets,” Jin added.
In Vietnam, content developers have faced the same dilemma. Most of them said that the commission is too high while they are mainly individuals who do not belong under the umbrella of any organisation or business.
Apple and Google both launched their app markets in 2008 in Vietnam. Since then, they have been rapidly evolving and are the common point linking independent developers and millions of smartphone users. Both groups use different monetisation models depending on the developer, leaving them with around 70-85 per cent of an app’s subscription fee or price.