[2020 National Audit] Choi Ki-young: "Google's 100 Billion Won Support Plan for 'Fee Increase' Is Not Enough"
On the 7th, at the National Assembly's Science, Technology, Information and Broadcasting Committee's audit, Choi Ki-young, Minister of Science and ICT, is reporting on his duties.
[Photo by Yonhap News]
[Asia Economy Reporter Seol Gina Jo] Choi Ki-young, Minister of Science and ICT, stated that Google's recent announcement of a program worth over 100 billion KRW to support the Korean digital content ecosystem is "insufficient," following Google's official policy to expand app commission fees to 30%.
At the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee hearing, Minister Choi responded to a question from Hong Jung-min, a member of the Democratic Party of Korea, asking whether Google's support measures are adequate for the app ecosystem in crisis, saying, "No, I do not think so in the long term." He also agreed with Hong's criticism that Google's support measures are merely "showmanship."
Earlier, Google announced that starting next year, app developers on Google Play will be required to use Google's payment system (in-app payment) when selling content and items, and that Google will take a 30% commission in this process. Unlike Apple App Store, which has applied this policy only to games so far, Google is expanding it to all content and apps, effectively increasing commission fees. This not only increases the burden on app developers but also directly leads to price hikes for consumers using digital content such as webtoons and music.
Regarding the proposal that the National Assembly and government should adopt a resolution opposing Google's actions and take active measures, Minister Choi said, "It is not about targeting a specific company, but if there is unfairness, it should be improved, and innocent victims should not be created." He added that the Ministry of Science and ICT's ongoing fact-finding investigation is "well underway and expected to be completed by the end of this month."
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In response to Democratic Party member Han Jun-ho's remark that "with NCSoft also cautious of Google, the government needs to act as a shield for our startups and companies," Minister Choi replied, "We are conducting a fact-finding investigation" and "We will coordinate with relevant ministries to respond."
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