[Reporter’s Notebook] Google Pressuring Government by Holding 40 Million Users Hostage

[Asia Economy Reporter Minyoung Cha] Gautam Anand, Vice President of YouTube Asia-Pacific, said on the 20th that the amendment to the Telecommunications Business Act currently under discussion in the Korean National Assembly "would be regrettable as it could hinder YouTube's opportunity to continue investing in the success of Korean creators." Although he used the term "regrettable," the underlying message is closer to a threatening statement from big tech companies leveraging the "creator ecosystem" and "users" as hostages.

The controversy over domestic network usage fees began with a dispute between Netflix and SK Broadband. In 2018, Netflix did not pay network usage fees to SK Broadband and instead filed a lawsuit to confirm the non-existence of debt, leading to a three-year legal battle. As public opinion spread in the National Assembly that Netflix was unfairly not paying network usage fees, six legislative proposals were submitted.

YouTube's confidence in issuing "threats" to a country's National Assembly and government stems from being the world's number one video platform. According to the 2021 Broadcasting Media Usage Survey by the Korea Communications Commission, 65.5% of citizens aged 13 and older watch YouTube, which is about 40 million people. During this process, YouTube earned enormous profits. Google Korea's revenue in 2021 was 292.3 billion KRW, a 32.8% increase from the previous year. This figure only includes advertising revenue generated from Google Search and YouTube. App market payment fees are excluded, which sparked controversy over loopholes.

YouTube's claim of "continuous investment for creators" is also misleading. Only a very small number of top creators who meet certain conditions receive revenue settlements. The known conditions are "1,000 subscribers and 4,000 hours of watch time." Even then, the revenue generated from ads is split 45 to 55, with YouTube taking 45%. In the service terms change in June 2021, it was included that YouTube is allowed to place ads on videos that do not meet these conditions. The revenue from these ads belongs to YouTube, not the creators.

YouTube has made significant contributions to the Korean content industry, but it has enjoyed even greater profits in the process. Network usage fees are naturally costs that any company using communication networks must pay, regardless of whether they are domestic or foreign companies. It is the same as a credit card company charging fees from both B2B (business-to-business) customers and B2C (business-to-consumer) end users. If you use the network, you have to pay for it.

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