[카카오VSGoogle] "Kakao Takes the Lead Against Google's Abuse" vs "Rights of Platform Operators"

Kakao-Google Showdown Sparks Consumer Concerns
Diverging Views on Mandatory In-App Payments

[Asia Economy Reporter Seungjin Lee] Google has rejected the approval of an update for the Android version of the KakaoTalk application, citing violations of its in-app payment policy. The reason is that KakaoTalk continues to maintain an 'outlink' that allows users to move to an external website for payment. Critics argue that this standoff between the two parties is unfairly affecting innocent consumers.

The Burden Falls Entirely on Consumers

According to the IT industry on the 7th, the latest version of KakaoTalk (v9.8.5) has not passed Google's review and thus has not been updated. This is because Kakao has defied Google's in-app payment policy implemented since June. Google allows third-party payments within apps in addition to its own in-app payment system but prohibits outlink payment methods, warning that violations could lead to removal from the Google app market. It also bans expressions that guide or encourage web payments.

However, even after the implementation of the in-app payment policy, KakaoTalk posted a notice within the app stating that users can purchase cash at the same price as before by using the web, providing an outlink to a web page. In fact, Kakao raised the price of KakaoTalk Emoticon Plus on Google Play from the previous 4,900 KRW per month to 5,700 KRW per month, while selling it on the web page for 3,900 KRW per month.

The dispute over mandatory in-app payments between Google and Kakao is escalating with consumers caught in the middle, leading to growing dissatisfaction. Consumers must use bypass methods such as APK sideloading or alternative app markets like One Store, rather than Google Play, to update the app. This is considered highly inconvenient compared to the previous one-click update method on the existing app market. Additionally, if updates are not made, new features such as open chat room voice rooms become inaccessible. It is also problematic that the same emoticons must be purchased at different prices depending on the app version.

Despite growing consumer dissatisfaction, Kakao plans to maintain the web link for the time being. A Kakao representative said, "We intend to continue the current method of guiding users to choose payment methods other than in-app payments for the time being."

"Google's Tyranny" vs. "A Legitimate Right"... Diverging Views

Regarding Google's mandatory in-app payment policy, the IT industry is largely critical, fearing that the commission fees will shake the mobile ecosystem, while some argue it is a legitimate right for platform operators to enforce such policies.

Concerns about Google's move focus on the marginalization of small and medium-sized businesses. Google's commission increase raises content supply costs, which inevitably leads to higher consumer burdens. Established businesses can reflect these costs in their usage fees, but those not yet established may have to pass the increased commissions onto developers or creators due to competitive pressures.

In reality, prices for major content services such as music streaming and webtoons have risen by around 20% due to Google's commission hike, while lower-tier apps have been unable to raise prices. Maintaining service prices means struggling to cover higher commissions and incurring losses, but raising prices risks losing competitiveness, leading to inevitable marginalization.

There is an interpretation that KakaoTalk, used by virtually the entire nation and less affected by service disruptions when opposing Google, has taken the lead. KakaoTalk's monthly active users (MAU) stood at 47.43 million in the first quarter. As the only app that can defy Google Play, which holds over 70% market share domestically, KakaoTalk is seen as preventing the destruction of the mobile ecosystem. Kakao itself complies with Google's in-app payment policy for all services except KakaoTalk, including Kakao Webtoon and Kakao Games.

On the other hand, some argue that it is natural for platform users to comply with platform operators' policies. Google Play serves over 2 billion users worldwide and provides payment systems that support local currencies, as well as development and analytics tools.

An IT industry insider explained, "Kakao, as a platform operator, understands the process of collecting commissions and reinvesting them into development costs. When providing services overseas, Google's in-app payment system can be significantly helpful, so as a platform user, Kakao cannot simply oppose Google's measures unconditionally."