Kakao and Google agree to work toward resolution of dispute

Tech

Published: 08 Jul. 2022, 13:07

Kakao and Google agree to work toward resolution of dispute

Kakao and Google agreed to work toward a resolution of their dispute over the U.S. company's in-app payment policy, the companies said Friday.

But updates for Kakao's Kakao Talk messenger app are still being blocked by Google.

Executives from the two companies held an initial meeting arranged by the Korea Communications Commission (KCC) Thursday at 4 p.m.

"The companies agreed to cooperate to resolve the current situation in an amicable manner," the KCC said. "Further discussions will take place if necessary."

Earlier this month, the Korean company challenged the in-app payment policy of the $1.5-billion-market-cap tech giant by posting a payment link guiding users to payment methods independent of Google's Play Store.

Updates to Kakao Talk, the Korean company's messenger app, were disabled by Google for a terms of service violation, making it the first major app to be stopped from making an update due to the in-app payment issue.

Local media reported that Kakao may remove the link, but a company spokesperson said that nothing has been decided.

Starting April 1, Google said that all apps must either use its in-app purchase system and pay up to 30 percent commissions or a third-party system and pay 4 percentage points less. Apps cannot include a link that directs users to pay outside the app to avoid commissions.

The company has been warning that those who do not abide by the company's new payment policy will not be able to update their apps and may even be removed from the app store starting June 1.

KCC warned in April that it will deem Google's actions as illegal if makes the policy effective and takes measures accordingly, but it has not come to a conclusion on whether Google's refusal to update Kakao Talk is a breach in the law yet.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]