South Korea has opened a competition investigation against tech giant Google, part of Alphabet.

The reason is the new app store policy from Google, in particular, the commissions the company charges for purchases within apps via its mobile applications.

Google wants to receive a 30 percent commission on digital purchases by consumers through its proprietary billing system. The new policy must come into effect in more than a year.

South Korean app developers are vehemently opposed to the measure. The scheme would violate local laws on fair trade and telecommunications.

Google has a market share of more than 63 percent in app stores in the country. Last year, in-app sales were worth $ 5 billion in revenue. South Korean authorities are looking at whether they can join forces against Google.

In a counter-reaction, Google has created a $ 100 million fund to support local app developers and app users.

But this fund did not receive the approval of the Korean minister of ICT, because it would do too little for the long term. The ministry will soon publish an overview of the rates that companies use.