[Comprehensive] One Month Since the Enforcement of the 'In-App Payment Act'... The Path to Entry for '3N' into Native App Markets Has Opened

'Google Gapjil Prevention Act' Marks One Month Since Enforcement, Exploring Cooperation Measures for System Stabilization

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] One month after the implementation of the world’s first law banning mandatory in-app payments, known as the ‘Google Abuse Prevention Act,’ the government and leading domestic mobile content companies have come together to foster a fair competition and mutual growth environment within the mobile application (app) ecosystem.

With major content concentrated in foreign app markets such as Google and Apple, a win-win agreement has been reached to support the entry of content into domestic app markets, serving as an equal access right. This is expected to lay the groundwork for expanding the presence of the ‘3N’ game companies?Nexon, Netmarble, and NCSoft?in domestic app markets.

One Month Since Ban on Mandatory In-App Payments... Domestic App Markets, 3N, OTT, and Streaming Join Hands

On the morning of the 13th, the Ministry of Science and ICT held a meeting at the Lunamiele Convention Hall in Yeouido, Seoul, to discuss ways to develop the domestic mobile app ecosystem and signed a ‘Win-Win Agreement for Revitalizing Domestic App Markets.’

This meeting was organized to review the current situation with domestic app markets and content companies following the enactment of the amendment to the Telecommunications Business Act on the 14th of last month, which bans mandatory in-app payments?the so-called ‘Google Abuse Prevention Act’?and to explore cooperation measures to ensure the system’s establishment in the platform market.

The win-win agreement involved domestic app markets such as One Store and Galaxy Store, along with eight leading domestic mobile content companies (Nexon, Netmarble, NCSoft, Wavve, TVING, Melon, Genie Music, and FLO). The participating companies agreed on ▲ fostering fair competition and mutual growth within the domestic mobile app ecosystem ▲ preventing harm to domestic users and enhancing their rights ▲ ensuring content entry without unfair discrimination against domestic content companies ▲ supporting smooth content entry for domestic app market operators. They also agreed to hold regular meetings twice a year and gradually expand the scope of participants.

During the meeting held after the signing of the win-win agreement, the content industry expressed the need for cooperation and support to create a fair competitive environment with global operators and requested attention to creating conditions for fair revenue sharing for creators. Domestic app markets expressed their commitment to actively fostering an environment for fair competition and mutual growth within the domestic mobile app ecosystem and asked for support and interest from the content industry and users.

Minister Hyesook Lim of the Ministry of Science and ICT stated, “Securing the competitiveness of domestic app markets and content companies allows users, including our citizens, to enjoy excellent domestic content represented by the Korean Wave in a diverse and affordable manner. Through this, it strengthens the protection of rights for creators and developers and lays the foundation for the growth of related content industries.” She added, “Especially since most workers in the content industry are in their 20s and 30s, I hope young creators and developers receive rewards commensurate with their abilities and efforts and can pursue bigger dreams.”

[Image source=Yonhap News]

Equal Access Rights Missing from Ban on Mandatory In-App Payments... Supplemented by Win-Win Agreement

This win-win agreement is notable for supporting the entry of popular content such as 3N games not only on Google Play Store and Apple App Store but also on domestic app markets. Previously, Representative Junho Han of the National Assembly’s Science and ICT Committee (Democratic Party) included an equal access right in the amendment to the Telecommunications Business Act banning mandatory in-app payments. This provision required value-added telecommunications service providers to offer apps on other app markets when providing content to a specific app market. The intent was to activate competition among app markets by providing the same content on all apps and to curb Google’s dominant market position. However, concerns were raised during discussions that it might be a law supporting specific companies, and it was ultimately excluded.

However, through this agreement, leading domestic content companies have voluntarily agreed to implement equal access rights, which is expected to open the way for domestic consumers to enjoy various conveniences. Currently, among the 53 mobile games released by the 3N companies, only six are available on One Store, but this agreement is expected to increase the number of games entering the platform in the future.

Representative Junho Han said, “Although Korea is a top-7 global content powerhouse, it remains dependent on overseas app markets like Google, suffering from reduced profitability and unfair contracts. Above all, the problem is that users’ choices are limited and costs are passed on to them.” He emphasized, “If domestic app markets are revitalized, it will lead to strengthening domestic content competitiveness, securing market fairness, and enhancing user protection and benefits.”

Some companies also revealed specific entry plans. After the meeting, Jaehwan Lee, CEO of One Store, told reporters, “Game companies sympathize with the purpose of the win-win agreement and agree in principle that domestic app markets need to be revitalized and expanded to reduce dependence on overseas platforms. Nexon’s ‘Blue Archive’ is scheduled to be launched on One Store next month.”

At the meeting, the ‘3N’ companies?Nexon, Netmarble, and NCSoft?expressed positive consideration of releasing newly launched games on domestic app markets, including One Store, in line with the spirit of the win-win agreement.

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