'In-App Payment Conflict' Kakao and Google Reach Agreement for Amicable Resolution

[Asia Economy Reporters Nahum Kang, Minyoung Cha] Kakao, which had resisted Google's forced in-app payment policy by maintaining web payment outlinks, has agreed to resolve the issue amicably with Google.

According to the Korea Communications Commission (KCC) and industry sources on the 7th, the KCC held individual meetings and a joint conference with Kakao and Google around 4 p.m. in the KCC meeting room, chaired by Kim Jae-cheol, Director of the User Policy Bureau.

A KCC official stated, "We listened to the positions of Kakao and Google regarding KakaoTalk's update refusal," adding, "Both parties agreed to cooperate mutually and strive to resolve the current situation amicably." Additional discussions will be held if necessary.

It is reported that Kakao expressed its intention to work for user convenience during the meeting. Yang Hyun-seo, Vice President of Kakao, who attended the meeting, told reporters immediately after the talks, "Everyone is putting their heads together to make the top priority decision considering user convenience."

However, whether to remove the web payment outlink will be decided after internal review.

Earlier, Kakao requested Google to review the KakaoTalk update, but on the 30th of last month, Google rejected the review of the latest version of the KakaoTalk app. This was a retaliatory measure against Kakao for defying Google's forced in-app payment policy and maintaining the ‘web payment’ outlink that allowed cheaper payments for some paid content (KakaoTalk emoticons).

As updates became impossible through Google Play, Kakao has been distributing the Android version app installation file (APK) directly as a temporary measure. When searching for KakaoTalk on Kakao’s portal ‘Daum,’ instructions on how to download the latest KakaoTalk version for Android smartphone users are provided.

Meanwhile, separate from the meeting results, the KCC plans to continue investigating whether Google's refusal to approve updates violates the Google Fair Trade Act (an amendment to the Telecommunications Business Act). If the fact-finding investigation reveals that Google has violated prohibited acts, it will face sanctions such as fines and corrective measures.