"If Google Expands App Toll, Content Industry Revenue of '2 Trillion Won' Will Disappear"

[Asia Economy Reporter Bu Aeri] There is a claim that Google's expansion of the in-app transaction fee policy will lead to a revenue decrease of 2 trillion KRW in the content industry.

On the 20th, Professor Yoo Byung-jun of Seoul National University's Business Administration Department presented these research findings at the Korea Internet Corporations Association's discussion titled "Estimation of Damage to the Content Industry and Countermeasures Due to Google's Expansion of Mandatory In-App Payment Policy."

Previously, Google announced that payments made when using apps distributed through Google Play must use its own system (in-app payment), and that it would take a 30% commission. This policy, which had been applied to game apps, was expanded to content areas such as music, videos, and webtoons.

According to Professor Yoo, due to Google's expansion of app commission fees, the content industry is expected to see an annual revenue decrease of 2.1127 trillion KRW in 2021. Considering Apple's App Store, which already applies a 30% commission, the revenue decrease in the "mobile content industry" due to app market commissions is estimated to reach approximately 3.5838 trillion KRW.

Professor Yoo calculated this based on the transaction amount subject to the expanded app commission (9.2726 trillion KRW). Taking into account the content industry's annual growth rate of 10.3%, he estimated that by 2025, the revenue decrease will reach 5.3625 trillion KRW.

Additionally, the industrial ripple effect is expected to result in a production decrease of 2.9408 trillion KRW and the loss of 18,220 jobs. Professor Yoo explained, "Considering that many young people are employed in the content business, this is expected to have a negative impact on the youth."

The need for active government intervention on this issue was also raised. Professor Yoo argued, "Contrary to Google's claims, small and medium-sized enterprises with poor operating profit margins are expected to suffer greater losses," and emphasized, "The government needs to actively intervene to reduce commissions and address the mandatory payment methods."

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