[2020 National Audit] KCC Targets 'Google Abuse of Power'

October 8 KCC National Audit
Google In-App Payment Practices Expected to Be Addressed

[Asia Economy Reporter Koo Chae-eun] At today's National Assembly audit of the Korea Communications Commission (KCC), the controversy over Google's commission fee abuse as the 'app market giant' is expected to be the main topic.

The KCC began an on-site inspection last month regarding Google's forced in-app payment system and is currently reviewing whether it violates the law, so members of the Science, Technology, Broadcasting and Communications Committee are expected to focus their related inquiries on this issue.

According to industry sources on the 8th, starting next year, Google will require app developers listed on Google Play to use Google's own payment method (in-app payment) when selling content and items, taking a 30% commission in the process. This is expected to increase the burden on app developers and inevitably lead to price hikes for consumers.

The KCC has mentioned that Google's expansion of in-app payments may constitute a prohibited act under the Telecommunications Business Act. However, since Google is a foreign company, it is uncertain whether regulatory enforcement power can be secured.

Han Sang-hyuk, chairman of the KCC, stated at the full meeting of the Science, Technology, Broadcasting and Communications Committee last month, "We consider Google's forced in-app payment to fall under Article 5 of Appendix 4 of the Enforcement Decree of the Telecommunications Business Act, which prohibits 'providing telecommunication services that harm users' interests,' but we are reviewing it as there may be conflicts with other regulations."

Chairman Han particularly added, "Unlike Apple, Google secured market dominance by utilizing Android open source and then applied the in-app payment policy," and "It is possible to revise the enforcement decree before Google implements the changed in-app payment policy."

Related discussions continued at the Ministry of Science and ICT Minister's audit held the day before. Minister Choi Ki-young said, "We are currently conducting an on-site investigation and plan to complete it by the end of this month."

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