{"id":34101,"date":"2021-11-08T16:53:59","date_gmt":"2021-11-08T21:53:59","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=34101"},"modified":"2021-12-02T16:29:24","modified_gmt":"2021-12-02T21:29:24","slug":"google-wants-fee-for-alternate-billing-systems","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2021\/11\/08\/google-wants-fee-for-alternate-billing-systems\/","title":{"rendered":"Google Wants Fee for Alternate Billing Systems"},"content":{"rendered":"<p><a href=\"https:\/\/9to5google.com\/2021\/11\/04\/google-play-store-korea\/\">Abner Li<\/a> (via <a href=\"https:\/\/twitter.com\/bzamayo\/status\/1456234534727561218\">Benjamin Mayo<\/a>):<\/p>\n<blockquote cite=\"https:\/\/9to5google.com\/2021\/11\/04\/google-play-store-korea\/\"><p>In <a href=\"https:\/\/9to5google.com\/2021\/08\/31\/google-play-store-south-korea-payment-systems-law\/\">late August<\/a>, South Korea passed a law requiring alternate in-app payment systems in Google Play and the iOS App Store. Google today <a href=\"https:\/\/developers-kr.googleblog.com\/2021\/11\/enabling-alternative-billing-in-korea-en.html\">detailed<\/a> what steps it will be taking to comply.<\/p><p>[&#8230;]<\/p><p>Meanwhile, apps that use alternate billing and are distributed via Google Play will still be subject to service fees. That cut will &ldquo;continue to be based on digital sales on the platform,&rdquo; but Google will reduce what it takes by 4% in recognition of how &ldquo;developers will incur costs to support their billing system.&rdquo;<\/p>\n<p>For example, for the vast majority of developers who pay 15% for transactions through Google Play&rsquo;s billing system, their service fee for transactions through the alternate billing system would be 11%.<\/p><\/blockquote>\n\n<p><a href=\"https:\/\/daringfireball.net\/linked\/2021\/11\/05\/google-south-korea\">John Gruber<\/a>:<\/p>\n<blockquote cite=\"https:\/\/daringfireball.net\/linked\/2021\/11\/05\/google-south-korea\"><p>As Ben Thompson observed on today&rsquo;s episode of <a href=\"https:\/\/dithering.fm\/\">Dithering<\/a>, for <em>small<\/em> transactions&#x2009;&mdash;&#x2009;like the ones typically offered in games&#x2009;&mdash;&#x2009;credit card fees are likely in the 5-6 percent range. So if this flies, Google&rsquo;s revenue per in-app transaction for apps from the Play Store isn&rsquo;t going to effectively change at all.<\/p>\n<p>Is it going to fly? Like I&rsquo;ve said, stock up on popcorn.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/www.macrumors.com\/2021\/11\/04\/google-play-will-allow-alternative-billing\/\">Joe Rossignol<\/a>:<\/p>\n<blockquote cite=\"https:\/\/www.macrumors.com\/2021\/11\/04\/google-play-will-allow-alternative-billing\/\"><p>Apple meanwhile has yet to make any changes to App Store billing in South Korea. The company previously said the law &ldquo;will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections, [and] make it difficult to manage their purchases,&rdquo; while making parental controls less effective.<\/p><p>In October, Apple told the South Korean government that it was &ldquo;already in compliance with the new law and did not need to change its app store policy,&rdquo; according to <em><a href=\"https:\/\/www.reuters.com\/technology\/google-plans-allow-third-party-payments-systems-skorea-2021-11-04\/\">Reuters<\/a><\/em>.<\/p><\/blockquote>\n\n<p><a href=\"https:\/\/twitter.com\/agilethumbs\/status\/1456414180341211138\">agilethumbs<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/agilethumbs\/status\/1456414180341211138\"><p>Apple and Google aren&rsquo;t entitled to a cut of anything that happens on the computer I bought, or the company I built just because it works on computers they made.<\/p><\/blockquote>\n\n<p>Why not your <a href=\"https:\/\/twitter.com\/stroughtonsmith\/status\/1456693777544982531\">ISP<\/a>, and your cellular carrier, and your electric company, etc.?<\/p>\n\n<p>Previously:<\/p>\n<ul>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2021\/10\/15\/apple-refuses-app-store-changes-for-south-korea\/\">Apple Refuses App Store Changes for South Korea<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2021\/09\/01\/south-korea-app-store-bill\/\">South Korea App Store Bill<\/a><\/li>\n<\/ul>\n\n<p id=\"google-wants-fee-for-alternate-billing-systems-update-2021-11-12\">Update (2021-11-12): <a href=\"https:\/\/twitter.com\/elkmovie\/status\/1458310976483303425\">Michael Love<\/a>:<\/p>\n<blockquote cite=\"https:\/\/twitter.com\/elkmovie\/status\/1458310976483303425\">\n<p>One thing to note about Google&rsquo;s new 11% cut of third party payments is that it seems to be heavily dependent on these payments taking place in-app and through Google&rsquo;s standard UI; it&rsquo;s the only way they can reliably determine their commission.<\/p>\n<p>For Apple or Google to introduce a commission like this on web links would be an extremely tall order; they have no way of figuring out what people are spending, and would be relying on developers to accurately track + attribute payments from web links versus other sources.<\/p>\n<\/blockquote>\n\n<p id=\"google-wants-fee-for-alternate-billing-systems-update-2021-11-23\">Update (2021-11-23): <a href=\"http:\/\/www.fosspatents.com\/2021\/11\/in-filing-with-appeals-court-apple.html\">Florian Mueller<\/a>:<\/p>\n<blockquote cite=\"http:\/\/www.fosspatents.com\/2021\/11\/in-filing-with-appeals-court-apple.html\"><p>Apple&rsquo;s concerns are all about the practical aspects of collecting its commission--there&rsquo;s no reason to believe Apple would <i>not<\/i> want to get paid even on payments made after users click on external links presented by an iOS app.<\/p><p>Anybody dreaming of a &ldquo;30 percent less&rdquo; option in connection with external links is barking up the wrong tree. The app tax will be imposed one way or the other. Collection may be more cumbersome, but Apple&rsquo;s position is that it&rsquo;s entitled to its commission and that&rsquo;s what even the <i>Epic Games v. Apple<\/i> judgment says.<\/p><\/blockquote>\n\n<p><a href=\"http:\/\/www.fosspatents.com\/2021\/11\/after-google-announcement-of-bad-faith.html\">Florian Mueller<\/a>:<\/p>\n<blockquote cite=\"http:\/\/www.fosspatents.com\/2021\/11\/after-google-announcement-of-bad-faith.html\"><p>So Google&rsquo;s reduction would leave a margin for third-party payment processing of only about 2.5% in the best case and 0.5% in the worst case (Amex&rsquo;s peak rate).<\/p><p>As a result, end users wouldn&rsquo;t save enough money to even bother to enter payment credentials elsewhere.<\/p><\/blockquote>","protected":false},"excerpt":{"rendered":"<p>Abner Li (via Benjamin Mayo): In late August, South Korea passed a law requiring alternate in-app payment systems in Google Play and the iOS App Store. Google today detailed what steps it will be taking to comply.[&#8230;]Meanwhile, apps that use alternate billing and are distributed via Google Play will still be subject to service fees. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2021-11-08T21:54:02Z","apple_news_api_id":"10b19e92-6203-4ae1-91b6-c1b0eb62e1de","apple_news_api_modified_at":"2021-12-02T21:29:27Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAAAw==","apple_news_api_share_url":"https:\/\/apple.news\/AELGekmIDSuGRtsGw62Lh3g","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[248,2085,101,51,784,2108],"class_list":["post-34101","post","type-post","status-publish","format-standard","hentry","category-technology","tag-android","tag-antitrust","tag-business","tag-google","tag-google-play-store","tag-south-korea"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/34101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=34101"}],"version-history":[{"count":4,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/34101\/revisions"}],"predecessor-version":[{"id":34248,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/34101\/revisions\/34248"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=34101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=34101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=34101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}