253 domestic game companies push for Google in-app payment fee refunds of up to 2 trillion won... Google expresses willingness to settle

South Korean gaming companies may recover some of the app store commissions paid to Google and Apple over the years. As Google agrees to a collective mediation request from 253 domestic gaming companies, the possibility of refunds totaling up to 2 trillion Korean won is becoming clearer.

■ 253 Companies File Class Action in U.S. Federal Court

According to industry sources, Google recently expressed its willingness to mediate, involving a class action lawsuit filed by 253 Korean gaming companies, including Fangs Sky, against Google in U.S. federal court over app store commissions.

The dispute stems from game companies claiming that the maximum 30% commission charged by Google and Apple is unreasonable. They demand refunds of the excess amounts paid beyond a reasonable rate (4-6%), filing for collective mediation in May and June of last year.

■ Internal Google Documents as Key Evidence

The game companies’ claims are supported by internal Google documents. During the antitrust lawsuit between Epic Games and Google in November 2023, internal materials revealed that a reasonable in-app payment commission rate is 4-6%, with a maximum of only 10% in a competitive market.

Based on this, the game companies argue that 24-26 percentage points of the up to 30% commission paid so far are excessive, and they seek full refunds of this excess.

■ Loss Assessments Completed for 157 Companies…Estimated Refunds Up to 2 Trillion Korean Won

According to We The People law firm leading the mediation, assessments of losses over the past decade have been completed for 157 companies. These companies paid a total of 48.513 trillion Korean won (about 7 trillion won) in commissions to Google and Apple, with $14.11 million (about 2.09 trillion won) identified as overcharged beyond reasonable rates.

Loss calculations for the remaining 96 companies are ongoing, and the total refund amount could increase further. However, since commission rates vary among companies and depending on arbitration and negotiations, actual refund amounts may differ.

■ Apple Also Faces Settlement Pressure… “95% of Antitrust Lawsuits End in Settlement”

Apple has not yet officially expressed willingness to settle alone. However, industry experts believe that, following Google’s lead, Apple is likely to seek a settlement as well.

Lawyer Lee Young-ki from We The People emphasized: “In the U.S., if found to violate antitrust laws, there can be punitive damages of more than three times the amount,” and “so far, over 95% of related lawsuits have ended in settlement.”