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South Korea's Fair Trade Commission (KFTC) is hastening its examination of Google's new policy to increase commission to 30 percent for application transactions.
The survey aims to study the effect of the increased commission on local game-makers, online music streamers, and webtoon platform operators that launch their apps through Google's Play Store. These include content by game-makers such as Nexon and Netmarble, and online music streaming from Melon.
There has been a forecast that with a 30 percent commission, Google's sales of local app developers will decrease and service fees will increase.
According to Prof. Yoo Byung-joon of the Business School of Seoul National University, there's an estimated 2.11 trillion won drop in sales upon raising of commission. It is anticipated that Google will make 9.27 trillion won in new profits.
Earnings by songwriters and singers from music streaming are expected to decrease when Google increases its commission.
The antitrust watchdog recently sent Google an examination report on accusations it prevented local firms from introducing games on rival operating services. It is set to send another examination report early next year related to allegations that it forces domestic game companies to use Play Store exclusively.
FTC will hold a meeting in the first half of next year sanctions on Google for this, and its other alleged demands on local firms.
