App Fee Postponed to September... 'Trick' or 'Surrender'? Depends on Google Gapjil Prevention Act

Google Postponed to September 30
Urgent Passage Needed for Gapjil Prevention Law
Likely to Be Discussed in Two Subcommittees This Week

[Asia Economy Reporter Koo Chae-eun] As Google has postponed the application of its in-app payment policy and the 30% commission fee imposition on new apps until next year, the National Assembly’s Science, Technology, Broadcasting and Communications Committee is expected to discuss the Google Gapjil Prevention Act (Amendment to the Telecommunications Business Act) within this week.

Since the deadline extension was made without any change to the commission increase policy, the passage of an effective Google Gapjil Prevention Act has become even more important. The industry believes that because Google has not changed its stance on raising commissions, it is urgent to pass the bill during the remaining period to establish a braking mechanism.

The 2nd Subcommittee Likely to Convene This Week... Bill Review to Intensify

According to the industry on the 24th, Google has revised the Google Play payment policy announced last September, deciding to defer the in-app payment policy and 30% commission fee imposition for both new and existing apps until September 30, next year. This is interpreted as being influenced by Apple’s commission reduction measures and persuasion from the National Assembly and the industry.

Accordingly, the National Assembly has decided to actively review the Google Gapjil Prevention Act. Park Sung-joong, chairman of the 2nd Subcommittee on Bill Review and a member of the People Power Party (the opposition party’s secretary of the Science and Technology Broadcasting and Communications Committee), plans to convene the 2nd Subcommittee soon to handle the amendment to the Telecommunications Business Act submitted to the National Assembly. A representative from Park Sung-joong’s office said, “We are positively considering holding the 2nd Subcommittee,” adding, “There is no change in the position that the amendment to the Telecommunications Business Act related to Google should pass the standing committee without dissent. We need to prepare a magnanimous and realistic alternative.”

A Bill Without Reverse Discrimination Must Be Proposed

Currently, six bills related to the Google Gapjil Prevention Act are pending in the 21st National Assembly. These include bills prohibiting app market operators from forcing specific payment methods (proposed by Park Sung-joong and Hong Jung-min), the bill by Cho Seung-rae of the Democratic Party of Korea and Yang Jung-sook, an independent lawmaker, which adds the Korea Communications Commission’s fact-finding authority, and the bill by Han Jun-ho of the Democratic Party of Korea that requires mobile content to be provided to app markets without discrimination. Heo Eun-ah of the People Power Party proposed a bill that prohibits acts of preventing mobile content registration on other app markets.

A National Assembly official said, “Besides the bill prohibiting forced payment methods, there are bills that add more prohibited acts, create guidelines, or include the Korea Communications Commission’s investigative authority, which differ in approach,” adding, “Some bills raise concerns that they might rather restrict domestic app operators, so these should be discussed through bill review.”

Industry: “Google’s Move Should Not End as Mere ‘Show’”

The industry says that Google’s postponement policy could be just a simple ‘show’ and that passing the bill is urgent. A content industry official said, “It’s merely a matter of buying time, so the Google-related bills currently being promoted in the National Assembly must be discussed promptly.”

Google’s deferral of the commission increase application timing is largely seen as influenced by Apple’s recent commission reduction measures. In fact, in India, where opposition from app operators has grown and over 150 app operators have united to create a native app market, Google further postponed the application of in-app payment to April 2022, extending it by six months.

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