Follow-up Measures for Google Fair Trade Act Released... Specifics on Forced Payment Methods Clarified

The Korea Communications Commission Holds the 6th Committee Meeting

[Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] On the 16th, the Korea Communications Commission (KCC) held the 6th committee meeting and deliberated and approved a partial amendment to the Enforcement Decree of the Telecommunications Business Act, which prohibits application (app) market operators such as Google and Apple from forcing specific payment methods, including their own in-app payments (payments made through their own payment systems).

The KCC defined acts of forcing payment methods as ▲ restricting the use or services of the app market ▲ directly or indirectly restricting other payment methods ▲ imposing unreasonable or discriminatory conditions or restrictions on app market exposure, search, advertising, data processing, and fees to prevent regulatory evasion. Operators caught enforcing such acts may be fined up to 2% of their sales revenue.

The KCC also plans to establish provisions regarding the app market operators’ terms of use, methods of changes, complaint handling procedures, and user protection regulations for in-app payments. The amended Enforcement Decree of the Telecommunications Business Act will be implemented from March after review by the Ministry of Government Legislation and approval by the Vice Ministerial Meeting and the Cabinet Meeting.

Forcing in-app payments is a representative example of 'gapjil' (abuse of power) by global app market operators. In September last year, Korea became the first country in the world to pass the 'Google Gapjil Prevention Act (Amendment to the Telecommunications Business Act),' which prohibits forcing specific payment methods.

On the same day, the KCC also discussed ‘matters related to transitioning the broadcasting advertising regulatory system to a negative regulation system and improving the broadcasting advertising system.’ The broadcasting advertising regulatory system will be shifted to a negative regulation approach, where the principle is permission and prohibition is the exception. Currently, broadcasting advertisements are only allowed in seven types: ▲ program advertisements ▲ mid-roll advertisements ▲ short advertisements ▲ subtitle advertisements ▲ time signal advertisements ▲ virtual advertisements ▲ indirect advertisements. This change aims to remove such segmented regulations.

The KCC plans to gather opinions from operators, experts, civic groups, and the general public through meetings, councils, and the KCC website, and prepare legislative proposals by the end of the year.

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