The Korea Communications Commission Begins Inspection on 'Forced Payment Methods' Targeting Google, Apple, and One Store

Receipt of Report by Korea Publishing Culture Association
Comprehensive Inspection of Violations of Prohibited Acts under the Telecommunications Business Act

[Image source=Yonhap News]

[Asia Economy Reporter Minyoung Cha] The Korea Communications Commission (KCC) announced on the 16th that starting from the 17th, it will conduct an on-site inspection of application (app) market operators such as Google, Apple, and One Store to check for violations of prohibited acts under the Telecommunications Business Act.

Last month on the 8th, the KCC received a report from the Korea Publication Culture Association claiming that Google's revised payment policy unfairly forces a specific payment method, and has been listening to stakeholders' opinions through industry meetings.

This on-site inspection will cover not only the reported issues but also the overall compliance status of app market operators with the amended Telecommunications Business Act and any violations of prohibited acts. According to the detailed types and criteria for prohibited acts newly stipulated in the enforcement ordinance and notification, the KCC will examine ▲whether app market operators delete or block apps using payment methods other than a specific one, or refuse or restrict the use of the app market ▲whether they technically restrict or make it procedurally difficult to use other payment methods ▲whether they restrict setting different usage conditions within a reasonable range according to the payment method ▲whether they impose unreasonable or discriminatory conditions or restrictions on fees, exposure, search, advertising, or other economic benefits ▲and whether they unjustly delay reviews or delete apps.

The KCC will not limit its investigation to the newly established types of prohibited acts but will also verify any acts by app market operators that hinder fair competition or infringe on user benefits, targeting app developers and general users. If violations are found during the inspection, the KCC plans to transition to a fact-finding investigation and take appropriate measures.

As Google enforces in-app payments on domestic app developers, content prices have been rising consecutively. Google previously notified domestic app developers that if they do not comply with its in-app payment policy by the end of this month, their apps will be deleted starting June 1. The payment methods allowed by Google are either its own payment system with up to a 30% commission or the developers’ own payment system within the app with up to a 26% commission. In response to Google's measures, the media and content industries have raised their prices. Subscription fees for domestic online video services (OTT) such as Wavve, Season, and TVING have increased by about 15%. Subsequently, web novel services like Joara and music services like FLO and VIBE also raised their prices. Webtoon companies have joined the price hike trend as well. Naver Webtoon announced through a 'Notice of Change in Exclusive Gift Certificate Prices' that the price of cookies for Android app payments will increase from 100 won to 120 won per cookie starting on the 23rd. The cash price for the video-on-demand (VOD) platform 'SeriesOn' will also increase by 10%, from 100 won per 100 cash to 110 won. Web novel publishers and authors such as 'MyDepot' and 'Raon E&M' are reportedly preparing lawsuits against Google, claiming damages caused by the forced in-app payment policy.

Meanwhile, the KCC urged app developers and industry stakeholders who have suffered unfair damages during the use of app markets to report their cases through the app market unfair practice reporting centers established both online and offline.

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