Foreign Media: "Passage of South Korea's Google Antitrust Law Marks a Major Shift Against Big Tech Monopoly"

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[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The National Assembly has passed the 'Google Gapjil Prevention Act,' which prohibits the mandatory use of in-app payments (a method of paying for paid content exclusively through an internal payment system) on app stores operated by platform companies such as Apple and Google, marking a significant change that foreign media have described as a decisive blow to the unfair practices of these big tech companies.

On the 31st (local time), Bloomberg News reported that the passage of the 'Amendment to the Telecommunications Business Act,' known as the Google Gapjil Prevention Act, by the National Assembly "sets a precedent that will bring significant changes to the app store business, a major revenue source for Apple and Google."

The so-called 'Google Fair Trade Act,' which prevents application (app) market operators such as Google from forcing specific payment methods, passed the National Assembly plenary session on the 31st.
[Image source=Yonhap News]

Daniel Ives of Wedbush Securities also stated in an interview with CNBC on the same day, "Today is a significant turning point," adding, "It shows real action, not just words, and will have a ripple effect on neighboring countries."

The amendment passed on this day prohibits app market operators from abusing their dominant position to force mobile content providers to use specific payment methods.

Accordingly, Google's plan to forcibly introduce in-app payments in South Korea starting this October is expected to be scrapped.

Previously, Google and Apple had mandated in-app payments, taking a 30% commission from the total payment amount. These companies are known to generate approximately $32.7 billion (about 38 trillion KRW) annually through this policy.

App developers have strongly opposed this, calling it an excessive fee imposed by abusing the platform's monopoly position.

Epic Games, a major U.S. game company famous for the game 'Fortnite,' filed an antitrust lawsuit against Apple last year over the in-app payment system, and Spotify, the world's largest music streaming service, has also criticized Apple's forced commission charges.

On the same day, Match Group, the developer of the dating app 'Tinder,' issued a statement saying, "South Korean lawmakers have taken historic measures to create a fair app ecosystem through bold leadership," calling today "a monumental day."

[Image source=Reuters Yonhap News]

With the National Assembly becoming the first in the world to pass a law banning mandatory in-app payments, there is a growing possibility that this will influence policy changes in other countries.

An analyst from Omdia said, "(The passage of the law) will lead to changes in other countries," adding, "Recently, governments worldwide have been wary of the increasing influence of big tech companies."

Professor Kim Dohyun of Kookmin University said in an interview with Bloomberg News on the same day, "The atmosphere has changed over the past two years," adding, "Mandatory in-app payments have created significant barriers for startups that do not generate much revenue."

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