Google's Push for In-App Payments... Jo Seung-rae Calls It a "Direct Challenge to Domestic Law"

Google to Remove Apps Providing Outlinks Starting June
"Excessive Greed Threatens Mobile Content Ecosystem"
Calls for KCC's Role... Cooperation Needed if Necessary

[Asia Economy Reporter Minyoung Cha] On the 31st, Democratic Party lawmaker Seungrae Cho strongly criticized Google for pushing forward its own in-app payment enforcement policy despite the so-called 'In-App Payment Enforcement Prevention Act (Amendment to the Telecommunications Business Act),' calling it a "direct challenge to domestic legal order."

Seungrae Cho, a member of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee who was the main proposer of last year's In-App Payment Enforcement Prevention Act, stated in a press release that "Google is effectively forcing in-app payments to maximize their own profits," and raised his voice saying, "Their excessive greed is threatening the mobile content ecosystem."

He added, "Google's enforcement of in-app payments is an act that destroys the value of 'building a free mobile content ecosystem' that they have long advocated," and "It is greed that unfairly shifts the burden onto creators and users for their monopolistic profits."

He also urged the Korea Communications Commission to fulfill its role as an ICT regulatory agency. Lawmaker Cho pointed out, "Google's tricks to nullify the current laws are being announced one after another, and domestic companies are reluctantly raising content usage fees while watching Google's moves," adding, "Nevertheless, the KCC only talks about 'post-investigations,' neglecting their duties and ignoring the suffering of powerless creators."

He continued, "In fact, the KCC should respond with all its might to Google's enforcement of in-app payments," and added, "If necessary, they should collaborate internally with the Fair Trade Commission and externally with overseas regulatory agencies."

Lawmaker Cho also criticized large domestic law firms, which act as hidden supporters of big tech companies. He said, "It is known that the support of large domestic law firms played a significant role in enabling overseas platform operators like Google to directly challenge Korean laws and government," and pointed out, "According to the Constitution of the Republic of Korea, everyone has the right to legal counsel, and lawyers, including those in law firms, have the duty to contribute to realizing their clients' rights. However, nullifying the law and undermining its purpose is merely an act of sacrificing public interest for private gain."

He added, "We strongly condemn Google's in-app payment enforcement policy once again, and will actively pursue additional legislation if necessary," and stated, "Furthermore, we will strive for the sustainable development of the app ecosystem by forming alliances with overseas legislative bodies, regulatory authorities, and non-governmental organizations (NGOs) in countries such as the United States and the European Union (EU) who share the same intentions."

Since April, Google has been implementing a policy that effectively mandates in-app payments. Apps that allow outlinks to external payment pages have been prohibited from updating. Starting from the 1st of next month, apps that do not comply with the in-app payment policy will be completely removed from the Google Play Store. Google has notified app developers that they cannot register their apps on the Play Store unless they use in-app payments with a maximum commission of 30% or build a third-party payment system within in-app payments (with a 26% commission).

As content industry players surrendered to Google's commission policy and raised fees, consumer burdens have also increased. Domestic online video service (OTT) providers such as Wavve and TVING raised the prices of tickets purchased through the Google Play Store by 15%, and Naver and Kakao Webtoon also increased content usage fees by 20%. Music platforms like FLO and VIBE raised streaming service prices by 14-16%.

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