[2020 National Audit] Seongwook Jo: "Google In-App Payment Controversy, Will Report Action Plan Before Comprehensive Audit"

Two Google Cases Under Investigation... "Will Reach a Conclusion Soon"
Regarding the 30% Commission Rate Policy, "Investigating Whether It Constitutes Anti-Competitive Behavior"

Fair Trade Commission Chairman Cho Sung-wook appeared at the National Assembly's Political Affairs Committee on the 8th for the National Audit of the Fair Trade Commission and delivered a work report. Photo by Yoon Dong-joo doso7@

[Sejong=Asia Economy Reporter Joo Sang-don] Cho Sung-wook, Chairman of the Korea Fair Trade Commission (KFTC), announced that he will report the action plan related to the recently controversial 'Google In-App Payment (30% commission imposition) mandatory policy' before the comprehensive audit.

On the 8th, Chairman Cho appeared at the National Assembly's Political Affairs Committee audit and responded "Understood" to Rep. Lee Yong-woo of the Democratic Party's request, "Please report the KFTC's action plan regarding the Google issue (30% commission) even before the comprehensive audit."

Separately, Chairman Cho stated, "The two Google cases currently under investigation will be submitted for review soon," and added, "Regarding the policy of imposing a 30% commission rate, we are investigating whether there are any anti-competitive or competition-hindering acts to restore competition."

Previously, the KFTC concluded no charges regarding the 2013 allegation that Google forced its search app to be pre-installed on its OS, but began re-examination in October 2016. The KFTC believes Google prohibited manufacturers such as Samsung and LG from installing competing OSs and forced domestic mobile game developers and distributors to release apps only on the 'Google Play Store.'

Regarding the recently proposed 'Online Platform Fairness Act,' Chairman Cho explained, "The importance of platform businesses is increasing, and at the same time, many unfair practices are occurring. If the Online Platform Fairness Act is enacted, it will help address areas not covered by existing laws." He also commented on the merger and acquisition (M&A) case between Baedal Minjok, the number one delivery app market player, and Yogiyo, the second, saying, "The KFTC's M&A division is investigating the Baedal Minjok case. This matter will be submitted as soon as possible," and added, "We hope it will be processed within this year."

During the audit, there was also a demand for the summons of Lee Hae-jin, founder of Naver and Global Investment Officer (GIO). Rep. Sung Il-jong of the People Power Party said, "The KFTC sanctioned Naver for preferential treatment of its own services, which is a serious issue that disrupts the market and interferes with other businesses' operations," and added, "I understand that GIO Lee is currently in Japan, but we request that he voluntarily appear at the audit session soon and fully explain the allegations."

Earlier on the 6th, the KFTC decided to issue corrective orders and impose fines totaling 26.7 billion KRW on Naver for continuously adjusting and changing its search algorithm to unfairly favor its own shopping and video services, thereby manipulating search result exposure rankings.

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