KCC: "Google In-App Payment Policy May Violate Law...Fact-Finding Investigation If Illegality Confirmed"

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] On the 5th, the Korea Communications Commission (KCC) issued an official interpretation stating that Google's mandatory in-app payment policy may violate the law. They plan to conduct an on-site investigation if prohibited acts occur, and will escalate to a fact-finding investigation if violations are confirmed.

The KCC disclosed its judgment on restricting web payment outlinks on the 5th to effectively enforce the Google Gapjil Prevention Act (Telecommunications Business Act), which introduces obligations for app market operators such as mandating specific payment methods.

Earlier, Google implemented its in-app payment policy starting from the 1st, banning outlinks within apps that induce external payments. App developers who do not adopt Google's in-app payment system (with fees up to 30%) or third-party in-app payment methods (fees up to 26%) will be unable to submit app updates from the 1st, and their apps will be removed from Google Play starting June 1st.

The KCC judged that such actions could fall under "forcing a specific payment method," as stated in Article 50, Paragraph 1, Item 9 of the Google Gapjil Prevention Act.

However, the KCC explained that the final determination of legal violations and sanctions will be made comprehensively considering factors such as bargaining position, coerciveness, and unfairness based on the results of fact-finding investigations into related illegal acts.

The KCC plans to verify violations through on-site inspections if app market operators like Google restrict or delete updates for apps using web payment outlinks or suspend app market usage for apps using other payment methods, thereby forcing a specific payment method. If violations are confirmed, they will escalate to a fact-finding investigation.

Additionally, if orders to resubmit materials during the fact-finding investigation are not complied with, or if corrective orders such as cessation of prohibited acts are ignored, the KCC intends to actively impose enforcement fines under the recently amended Telecommunications Business Act.

The KCC plans to open an "App Market Unfair Practice Damage Report Center" both online and offline within this month to collect and analyze damage cases from app developers. Based on the identified cases, they will form an "App Market Damage Relief Support Group" composed of external experts in legal and technical fields to review and analyze violations.

Han Sang-hyuk, Chairman of the KCC, stated, "We will strive to ensure that the legislative intent is faithfully realized and the system is firmly established by actively applying laws and enforcement decrees so that users' practical right to choose can be guaranteed."

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