"I am Korean" Epic Games CEO Visits Korea to Urge for "Fair Rules"

On the Morning of the 16th, 'National Assembly Seminar for Fairness in the Global App Ecosystem' Held

Tim Sweeney, CEO of Epic Games, along with officials from the U.S. Coalition for App Fairness (CAF), attended a seminar hosted by Cho Seung-rae, the ruling party floor leader of the National Assembly's Science, Technology, Information and Broadcasting Communications Committee, and others on the morning of the 16th. The seminar was titled "National Assembly Seminar for the Fairness of the Global App Ecosystem," where they engaged in discussions. From left to right: Seo Beom-gang, President of the Korea Webtoon Industry Association; Mark Boyadjis, founding member of the Coalition for App Fairness (CAF) and Senior Vice President of Match Group; C?dric O, French Minister of Digital Affairs; Representative Cho Seung-rae; CEO Tim Sweeney; Megan DiMuzio, Secretary General of CAF; U.S. Republican Representative Marsha Blackburn.

[Asia Economy Reporter Minyoung Cha] "'I am proud to say, I am Korean.'"

Team Sweeney, CEO of Epic Games, a key player in the anti-Apple alliance, expressed pride on the 16th in fighting against 'monopoly companies' like Apple and Google. Sweeney gained attention when he posted on his Twitter, "I am Korean!" in celebration after Korea became the first country in the world to pass the 'Google Gapjil Prevention Act (Amendment to the Telecommunications Business Act)' in September.

On the morning of the same day at 10 a.m., Team Sweeney participated as a panelist in the 'National Assembly Seminar for Fairness in the Global App Ecosystem,' hosted by Cho Seung-rae, the ruling party whip of the National Assembly's Science, Technology, Information and Broadcasting Communications Committee, and other members of the Democratic Party of Korea.

The seminar was organized to prepare follow-up measures for the amendment to the Telecommunications Business Act, which was the world's first to prohibit global application (app) market operators from forcing developers to use in-app payments (their own payment systems), and to establish an international cooperation system.

Sweeney stated, "Apple's commission raises all costs, which hinders benefits from reaching consumers even when developers reap rewards," and argued, "Apple and Google impose a kind of 'tax' on themselves, blocking the creation of new innovative services like the metaverse (extended virtual world)."

He added, "We are not trying to discuss whether Google's 26% commission is too high or should be lowered. The point is that Google should not abuse its monopoly position in the app store to extend it to other markets," emphasizing, "This does not mean that the commission should be zero."

Mark Buege, founding member of the U.S. Coalition for App Fairness (CAF) and Senior Vice President of Match Group, said, "With this legislation, Korea has shouted to the world that monopolistic behavior by app market operators is unacceptable," adding, "Although there are many opinions that passing such a bill in the U.S. will be difficult, we (the U.S.) must consider harmony with the global community."

Megan Dimuzio, Secretary-General of CAF, stressed the importance of thorough government regulation. He pointed out, "When the law passed in August, Apple and Google started a new game rather than complying with the law," and "They are resisting the efforts of the National Assembly of the Republic of Korea by not adopting alternative payment methods to replace in-app payments."

Google's payment system change plan, announced earlier this month, allows third-party payment methods but imposes a 26% commission rate and eliminates the benefits of external payments. Apple maintains its 'unacceptable' stance, claiming its current policy complies with the amended law. The Ministry of Science and ICT, the competent authority, also ordered Apple to supplement its voluntary compliance plan, citing insufficiencies.

Secretary-General Dimuzio emphasized, "What is clear is that these app market operators will not comply with the law not only in Korea but worldwide," and stressed, "Google and Apple should view the Korean law not as a 'barrier' but as an 'opportunity' to comply with principles they themselves have established."

Seo Beom-gang, Chairman of the Korea Webtoon Industry Association, said, "It is meaningful as the first case to put a brake on global policies, but the actual movements of companies are disappointing," adding, "The imposition of additional in-app payment commissions is being postponed, and I am concerned that Apple and Google might become resistant to fines and penalties."

Assemblyman Cho Seung-rae pointed out, "From a general market logic perspective, costs naturally decrease as the number of participants increases and turnover rises," and questioned, "Then why do app markets insist on the same commission even as the number of market participants increases?" He continued, "The devil is in the details, and there was a request to allow content developers to participate in the process of creating specific regulations for implementation by the Ministry of Science and ICT and the Korean government," adding, "I believe the details are the key to success."

The burden on the Ministry of Science and ICT, the relevant authority, has also increased. Kim Hyun, Vice Chairman of the Ministry, said, "We will prepare related enforcement decrees and notifications by March and announce them at the government level," adding, "We will first try to solve problems through dialogue and strive to ensure a fair competitive environment and payment methods that prioritize public interest." Related matters will be publicly discussed at the Ministry's plenary meeting on the 17th.

C?dric O, French Minister of Digital Affairs, emphasized the need for international cooperation to spread the wave of change that started in Korea worldwide. Minister O said, "Regulations should be flexible to solve future problems at the pace of the market so that they do not become laws regulating yesterday's digital market," and stressed, "This is also why I am attending this event, and cooperation among more countries such as the U.S. and Europe is necessary."

Even in the U.S., which has been relatively passive in sanctioning antitrust behavior, related discussions are spreading among some members of Congress. Republican Congresswoman Marsha Blackburn, who introduced the 'Open App Market Act' along with Representatives Richard Blumenthal, Amy Klobuchar, and Sean, said, "We have a responsibility to set new standards for creators, innovators, and small business owners," explaining, "The core is to create clear and applicable rules for app market operators and content creators."

Meanwhile, Assemblyman Cho Seung-rae plans to work to ensure that related events continue to be held worldwide, starting with the U.S. next year. For example, he is considering holding meetings in the U.S. around the world's largest electronics and IT exhibition, 'CES (Consumer Electronics Show) 2022.' Cho said, "It would be good if this issue is discussed at the G7 and others, but it will be difficult for now, so it is necessary to continuously raise international interest."

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