Did Google's App Fee Reduction Strategy Work?... 'Google Gapjil Prevention Act' Fails to Pass Again

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] The so-called 'Google Gapjil Prevention Act,' which aims to ban app market operators from forcing in-app payments, failed to pass the National Assembly's standing committee bill review subcommittee, making it difficult to process within this extraordinary session. It is evaluated that Google's strategy of pulling out the card of commission reduction ahead of the bill review worked.

According to the National Assembly on the 24th, the Science, Technology, Information and Broadcasting and Communications Committee held a subcommittee on information and communication broadcasting bill review the day before and reviewed seven bills containing the Google Gapjil prevention content, including the amendment to the Telecommunications Business Act. These bills include provisions that prevent app market operators from forcing specific payment methods and also prohibit demands for exclusive content releases.

Originally, the ruling and opposition parties planned to integrate and adjust these bills, prepare a committee alternative, and pass them. However, the bill processing was canceled that day due to differing opinions between the ruling and opposition parties. The ruling party argued for processing, stating that damage to domestic app developers and users caused by Google's Gapjil had already been confirmed, but the opposition party reportedly took a stance to postpone, citing the possibility of double regulation and the fact that there is no precedent for legally regulating Google's in-app payments.

In particular, it is known that there was also an opinion in the subcommittee that discussions on the bill should continue after observing Google's commission reduction plan.

Earlier, Google conveyed to members of the Science, Technology, Information and Broadcasting Committee its intention to lower the commission, which was originally planned to be raised up to 30%, to about half. In its statement, Google said, "This is a matter that requires a global policy change at Google's headquarters level, and we are actively working to move the headquarters, so we ask to wait for the bill processing until then." It also added, "If Korea takes the lead in introducing in-app payment regulations, it could be a major adverse factor in forming diplomatic relations in the early Biden administration."

As the Google Gapjil Prevention Act ultimately failed to even pass the bill subcommittee, there is even an evaluation that Google's lobbying was effective.

Criticism from related industries is also expected to be unavoidable. The IT industry has been urging the prompt passage of the 'Google Gapjil Prevention Act' in the National Assembly. On the 18th, 17 related organizations, including the Korea Internet Corporations Association, issued a statement expressing hope that "the National Assembly will keep its promise to prohibit app market operators' forced in-app payment policies to protect app developers and consumers."

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