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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korean game developers may soon recover a significant portion of the in-app purchase fees they paid to Google and Apple, after Google signaled its willingness to reach a settlement, according to an exclusive report by Bizwatch on March 12.
Industry sources said Google recently indicated its intention to settle a collective mediation request filed by 253 Korean game companies over in-app payment commissions.
The dispute began when companies including PangSky argued that the commission of up to 30% charged by Google and Apple was excessive. The developers filed collective mediation requests with a U.S. federal court in May and June last year, seeking refunds for fees exceeding what they believe to be a reasonable rate.
The companies cited internal Google documents revealed during the Epic Games antitrust lawsuit against Google in November 2023, which suggested that a fair in-app payment commission would be around 4–6%, or about 10% in a competitive market.
Based on that benchmark, the developers claim that roughly 24–26 percentage points of the 30% fee were excessive, and that the difference should be returned.
According to WethePeople Law Firm, which represents the developers in the mediation process, damage assessments covering 10 years of payments from 157 companies have already been completed. Those companies paid a combined $4.8 billion (about 7 trillion won) in commissions to Google and Apple.
Of that total, about $1.41 billion (around 2.09 trillion won) is estimated to have been overcharged, raising the possibility that up to 2 trillion won could be refunded.
Damage assessments for the remaining 96 companies are still underway, meaning the potential refund amount could increase. However, the final amount may vary depending on individual fee structures, mediation outcomes, and settlement terms with Google.
Apple has not yet indicated any willingness to settle, though industry observers say the company may eventually follow Google’s lead given the potential legal risks in antitrust disputes.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
