On the First Day of the 'Google Gapjil Prevention Act' Enforcement... KCC Emphasizes "Self-Regulation First"

Prioritize Listening to Voluntary Regulations and Industry Opinions over Hastening Enforcement Decree Preparation
Han Sang-hyuk: "A Starting Point for a Fair App Market"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Minyoung Cha] The world's first so-called 'Google Fair Trade Act (Partial Amendment to the Telecommunications Business Act)' came into effect on the 14th. The Ministry of Science and ICT, the competent authority, plans to prioritize listening to industry opinions from app market operators and app developers rather than rushing to prepare enforcement ordinances, and aims to induce voluntary regulation.

The Korea Communications Commission (KCC) announced on the 14th that it plans to prepare subordinate laws such as enforcement ordinances in line with the enforcement of the amendment to the Telecommunications Business Act, which prohibits app market operators from forcing specific payment methods.

The newly included provisions in the amendment to the Telecommunications Business Act are ▲imposing obligations on app market operators to prevent user damage and protect user rights (Article 22-9, Paragraph 1) ▲establishing grounds for conducting app market operation surveys (Article 22-9, Paragraph 2) ▲including disputes over payment and refund of usage fees in telecommunications dispute mediation (Article 45-2, Paragraph 1, Item 6) ▲adding prohibitions on forcing specific payment methods or delaying review/deletion as prohibited acts of app market operators (Article 50, Paragraph 1, Items 9 to 11). However, the provisions in Article 22-9, Paragraphs 1 and 2 will be enforced six months later, from March 14 next year.

The KCC has decided to first conduct opinion gathering along with industry self-regulation rather than rushing to prepare enforcement ordinances. Immediately after the law comes into effect, domestic and foreign app market operators will be required to submit specific improvement plans and detailed schedules for compliance. Separate sessions will also be held to listen to difficulties from app developers and others.

Earlier, on the 9th, a system improvement team and an inspection investigation team composed of experts from academia, the legal community, and research and technology-related institutions were formed. Going forward, the inspection investigation team will serve as a channel for collecting opinions from stakeholders such as app market operators, app developers, and creators.

In the future, the KCC will establish criteria for imposing fines on newly prohibited acts and create review standards to determine violations of prohibited acts. It also plans to impose obligations on app market operators to prevent user damage and protect user rights and establish grounds for conducting app market operation surveys. Along with monitoring policy changes by app market operators, it will also establish plans for a comprehensive survey of the app market ecosystem.

Han Sang-hyuk, Chairman of the KCC, emphasized, "For the enforcement of the law, the willingness of big tech companies, the app market operators, to voluntarily implement improvement measures and comply with the law is most important," adding, "It will be a starting point for a fair app market ecosystem."

Big tech companies such as Google and Apple have been controversial for forcing in-app payments on app developers. In-app payment refers to using an internally developed payment system, where the app marketplace collects a commission every time consumers pay for content or products from app vendors. Google and Apple, which mandated the in-app payment method, reportedly earned $32.7 billion (about 38 trillion KRW) annually while charging a 30% commission.

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