[2020 National Audit] "Google's 30% Commission Mandate, Resolution to Oppose Must Be Adopted"

"Google's Korean Digital Content Support Program Is Just for Show"
"Should Refer to India's Case with Over 150 Startups United"

[Image source=Yonhap News]

[Asia Economy Reporter Jin-gyu Lee] There has been a call to adopt a resolution opposing Google's policy to impose a 30% commission on all content distributed through its application market, Google Play. Additionally, it was pointed out that Google's support program for the Korean digital content ecosystem is merely for show.

On the 7th, Hong Jeong-min, a member of the Democratic Party of Korea, stated at the National Assembly Science, Technology, Information and Broadcasting Committee's audit, "A resolution opposing Google's recent policy to enforce a 30% commission on all content should be adopted."

Hong also criticized, "Charging a 30% fee on sales through Google's in-app payment system is an abuse of its dominant market position," adding, "It is an excessive level that startups cannot bear, causing consumer harm and destroying the app ecosystem."

He further questioned, "Google's announcement of a $100 million program to support the Korean digital content ecosystem seems to be just for show," and criticized, "It is also doubtful whether the support scale is sufficient."

In response, Choi Ki-young, Minister of Science and ICT, said, "If there are unfair aspects, they should be improved, and no innocent victims should arise," adding, "From that perspective, we will participate as much as possible and strive to produce results."

Regarding the ongoing investigation by the Ministry of Science and ICT into Google's commission increase, Minister Choi explained, "A considerable amount of investigation has been conducted so far," and "It seems it will be completed by the end of this month."

Han Jun-ho, a member of the Democratic Party of Korea, mentioned a Google-related article about India during the audit, stating, "In India, the world's second-largest internet market, more than 150 startups have unofficially united," and "As a result, Google postponed enforcing in-app payment mandates."

Han also pointed out, "Although India is the world's second-largest internet market, when looking at the size of the Google Play market, it is smaller than our country's revenue," and emphasized, "At the government level, we should refer to the Indian case together with our startups and lead negotiations with Google so that we can be in a favorable position."

This content was produced with the assistance of AI translation services.