Alphabiz - Gamers File Class Action Against Google, Apple Over In-App Fees; Netmarble Also Named

Exterior view of Netmarble G-Tower headquarters. (Photo=Netmarble)

[Alpha Biz= Paul Lee] South Korean game consumers have filed a class action lawsuit against Google and Apple, alleging unfair profits from in-app payment fees. Netmarble has also been named as a defendant over alleged participation in anti-competitive practices.

According to legal sources on April 8, the lawsuit was filed with the Seoul Central District Court by eight plaintiffs, including representatives of a game developers’ association, through a law firm.

The plaintiffs claim that Google and Apple abused their dominant market positions by restricting external payment options and forcing developers to use in-app payment systems, which charge commissions of up to 30%.

Although South Korea implemented legislation in March 2022 to prohibit mandatory in-app payment systems, both companies later allowed alternative payment methods while imposing fees of around 26% on external transactions. When combined with additional payment gateway (PG) fees of 4–6%, the total cost can exceed the original in-app commission rate.

The plaintiffs argue that such practices effectively circumvent the intent of the law and constitute unfair collusion and abuse of market power.

Netmarble has denied any involvement in anti-competitive conduct, stating that it did not participate in any alleged collusion.

The case is expected to test the enforcement of South Korea’s in-app payment regulations and could have broader implications for global app marketplace practices.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)