[2021 National Audit] Jo Seung-rae "KCC Needs to Prepare Follow-up Measures for Google Fair Trade Act"
Assemblyman Jo Seung-rae Criticizes During National Audit
[Asia Economy Reporter Minyoung Cha] On the 5th, during the National Assembly Science, Technology, Information and Broadcasting Communications Committee's (STIBC) audit of the Korea Communications Commission, criticism arose that follow-up measures for the so-called 'Google Gapjil Prevention Act (Amendment to the Telecommunications Business Act)' targeting app market operators must be promptly established.
The Google Gapjil Prevention Act, which passed the National Assembly plenary session on August 31, aims to prevent app market operators such as Google and Apple from abusing their market dominance by forcing app developers to use in-app payments (payment systems developed by the app market). Apple and Google charged up to 30% for in-app payment fees.
Democratic Party lawmaker Seungrae Cho pointed out during the audit, "Since the law came into effect on September 14, specific payment methods cannot be forced," adding, "However, when looking at the Apple Store or Google Play Store, there is no response regarding the enactment of the Korean law."
According to the Google Play Console customer center, in response to the FAQ question, "What impact does the recent enactment of Korean law have on Google Play's payment policy? Will developers still be charged service fees even if they no longer use Play's payment system?" Google states, "We plan to comply with this law," but also notes, "We will continue to review ways to maintain service fees that allow continued investment in the ecosystem."
Lawmaker Seungrae Cho added, "There are also appeals from developers that guidance from authorities is insufficient," and urged, "Please thoroughly provide information that such rights have been granted due to the law's changes." He also requested that opinions from industry stakeholders, including startups, be reflected during the enforcement ordinance drafting process.
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Han Sanghyuk, chairman of the Korea Communications Commission, responded, "We are currently in the process of hearing opinions from Google and Apple regarding their willingness to comply with the (Google Gapjil Prevention Act)," and said that countermeasures will be discussed.
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