[Asia Economy Reporter Seulgina Jo] The government has decided to review the commission policies of Google Play Store and Apple App Store, which occupy about 90% of the domestic application market. This move comes amid controversy over Google’s plan to impose a 30% commission on all app-generated revenue. Concerns are rising that this could threaten the survival of domestic app developers and extend to consumer harm, drawing attention to whether Google’s unilateral abuse of power will be curbed.
On the night of the 28th, at the full meeting of the National Assembly’s Science, Technology, Information and Broadcasting and Communications Committee (STIBC), Han Sang-hyuk, Chairman of the Korea Communications Commission, responded to a question from Hong Jeong-min, a member of the Democratic Party, urging a cross-ministerial response to Google’s expansion of app commission rates, stating, “We will review whether there is any violation of the law.” Chairman Han said, “The Fair Trade Commission should examine abuse of superior bargaining position, and the Korea Communications Commission should look into prohibited acts under the Telecommunications Business Act,” adding, “The Ministry of Science and ICT, the Fair Trade Commission, and the Korea Communications Commission will work together to find a solution.”
In response to criticism from Park Sung-joong of the United Future Party that the government is standing idly by, Chairman Han said, “We will carefully examine whether this falls under competition under the Business Act to ensure that customers are not disadvantaged by the abuse of superior status,” and added, “We need to find reasonable regulatory measures for overseas companies.” Minister Choi Ki-young of the Ministry of Science and ICT also hinted at the possibility of an investigation, saying, “We are reviewing this carefully. It seems problematic.”
Earlier, it was reported that Google is considering a plan to mandate the use of Google’s payment system for app purchases and impose a 30% commission on all apps. Similar to Apple, if Google imposes a 30% commission, content usage fees for videos, music, webtoons, and other services on smartphones equipped with Google’s operating system (OS) will inevitably increase by 20 to 30%.
Regarding this, Representative Hong pointed out, “Due to the policy change of the powerful Play Store, there are concerns about future price increases, reduced operating profits, and increased consumer harm.” According to Representative Hong, 60.9% of domestic content companies are classified as small businesses in terms of operating profit.
Some app developers, positioned as the weaker party, are even preparing collective action. The joint litigation legal platform Hwanan Saram is currently recruiting victims to report Apple and Google’s commission terms to the market supervisory agency, the Fair Trade Commission.
An industry insider said, “It is not easy for app developers to raise issues against platform giants like Google and Apple,” and added, “This will be an opportunity for the discussion on the abuse of power by global platforms to intensify.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
