Under US Pressure, Hong Jeong-min Urges Passage of Google Gapjil Prevention Act, Saying "It Cannot Be a Trade Issue"
[Asia Economy Reporter Buaeri] There is an argument that the controversy over Google's in-app payment policy cannot become a trade issue between Korea and the U.S., and that the Korean government should join forces with the U.S. government.
Hong Jeong-min, a member of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee from the Democratic Party of Korea, expressed this position at the Democratic Party policy coordination meeting held at the National Assembly on the 17th.
Referring to the letter sent by the U.S. Trade Representative (USTR) to the Korean government and the lawsuit filed by the American company Epic Games, Rep. Hong said, "Both the National Assembly of the Republic of Korea and the U.S. Department of Justice are acting in the same direction in regulating unfair monopolistic practices to establish a proper market order."
He continued, "The Google in-app payment issue cannot be a trade problem; rather, the Korean government and the U.S. government should join forces to promote cooperation for revitalizing the app market ecosystem and encouraging competition."
Earlier, the Korean Embassy in the U.S. sent a letter titled 'Results of a phone call with the U.S. USTR Deputy Representative regarding Google’s app store operation policy' on the 3rd of last month to ministries including the Ministry of Foreign Affairs, Ministry of Trade, Industry and Energy, Ministry of Science and ICT, and the Korea Communications Commission. The letter expressed concerns that the amendment to the Telecommunications Business Act, known as the so-called 'Google Gapjil Prevention Act,' targets specific companies. It is reported to include remarks from the USTR Deputy Representative that it could adversely affect national interests in trade matters.
Google announced that starting next year, it will apply the in-app payment (in-app purchase) and 30% commission policy to all apps distributed through Google Play, which sparked strong opposition domestically. In response, the National Assembly's Science, ICT, Broadcasting and Communications Committee proposed an amendment to the Telecommunications Business Act to prevent Google's forced in-app payment. However, discussions have been slow as the opposition party, the People Power Party, has taken a cautious stance.
Rep. Hong urged the Ministry of Science and ICT to complete the fact-finding investigation within this month. He said, "The People Power Party has returned to a cautious stance, unlike during the national audit, claiming that the exact amount and scope of damage to the domestic industry are not yet identified," adding, "Many of the questions raised by the People Power Party will be resolved through the Ministry of Science and ICT’s announcement."
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Furthermore, he emphasized to the People Power Party, "The Democratic Party has made every effort to ensure the swift passage of the amendment," and urged, "The People Power Party should no longer hesitate and join forces."
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