Google bows to South Korea law allowing third-party app payments

SEOUL -- Google will allow South Korean users to choose third-party payment methods for purchases made in apps, complying with a recent law that bans tech platforms from forcing developers to use their system.

Wilson White, Google's senior director of public policy, announced the move in a blog post directed at South Korean developers.

"We respect the decision of the National Assembly," White said in Thursday's post, outlining plans to give developers "the option to add an alternative in-app billing system alongside Google Play's billing system for their users in South Korea."

Before its about-face in South Korea, Google had said that developers of apps sold on the Google Play Store could use only Google Pay. The company behind the Android mobile operating system charges payment commissions of up to 30%.

The policy had drawn criticism in South Korea for the extra burden it placed on domestic app developers. Lawmakers in the ruling and opposition parties joined forces to draft a bill to limit tech platforms' ability to designate payment methods.

The National Assembly, South Korea's parliament, passed the bill into law in late August, making what is believed to be the first legislation of its kind in the world.

Although regulators around the world are taking a tougher line on multinational tech companies, it is rare to see a business model altered in this way for a particular country.

Google's decision has implications for Apple, which similarly requires apps sold through the App Store to use Apple Pay. Without changes, Apple's business model would likely run afoul of the new law.

The chief of Apple's South Korea arm recently offered to resign, the local Yonhap News Agency reported.