Kakao confirms cashout via external payment after standoff with Google

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South Korean messaging giant Cocoa confirmed today that it will remove the external payment option after Google blocked South Korean company KakaoTalk from releasing updates.

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The South Korean company continued to use an external payment link on its Android app in violation of the new Google App Payment Rules. Although app updates were suspended on June 30th, local reports information about blocking KakaoTalks updates in the Play Store appeared only last week.

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Cocoa told TechCrunch that he decided to remove the external link for the convenience of users.

The decision comes a week after Kakao held talks with the South Korean Communications Commission (KCC) and Google last Thursday (July 7). The company hadn’t made the decision to remove the link at the time TechCrunch asked earlier this week.

South Korea has become the first country to impose restrictions on Google and Apple’s payment policies that force developers to use only their own payment systems. The bill, also called Law against Googlewas adopted by the South Korean parliament in August last year.

South Korean developers can use third-party payment processors, but cannot use links to redirect customers to another site. Google’s new policy requires developers selling digital goods and services to use their own billing system. This means that Google does not allow developers to add links to their apps that allow users to bypass Google’s billing system.

April 1 Google said all apps must either use Google’s own payment method with a 15-30% fee, or apps that may offer a 3rd party system with a 26% fee. Google also said that apps could be removed if they don’t comply with new in-app policies starting June 1st.

KCC, which told TechCrunch in April that banning app developers from using the web link payment option would violate South Korea’s app payment law, reportedly will launch an investigation into Google’s billing policy.


Credit: techcrunch.com /

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