Startup Unable to Endure 'Commission Power Abuse'... Filing Complaint Against Google to Fair Trade Commission Today

[Asia Economy Reporter Seulgina Jo] "It’s neither a withdrawal nor a reduction. The grace period is meaningless."

On the 24th, the domestic startup industry, fed up with Google's commission abuse, will submit a complaint against Google to the Fair Trade Commission. Although Google announced the day before that it would delay the enforcement of the 'mandatory in-app payment and 30% commission' policy in the Korean market, the industry views this as a 'cunning move to appease public opinion.'

The joint legal team, including the collective lawsuit platform 'Hwanan Saramdeul' and attorney Jongchae Jeong from the law firm Jeongbak, will submit the complaint to the Fair Trade Commission in the afternoon, representing app developers harmed by Google's in-app payment policy. Attorney Jeong stated, "Google's mandatory in-app payment enforcement constitutes an abuse of market dominance and unfair trade practices under the Fair Trade Act," adding, "We will visit Sejong City today (the 24th) as planned to submit the complaint."

This urgency stems from concerns that if the commission abuse by the app market giant, which holds nearly 70% market share domestically, is not curbed, the survival of domestic startups will be threatened, along with increased consumer harm and deeper dependency on the mobile ecosystem. Previously, Google sparked controversy by mandating app developers on Google Play to use Google's payment method (in-app payment) when selling content and items, while charging a hefty 30% commission.

The joint legal team limited the complaint target to Google to prompt a swift decision and corrective order from the Fair Trade Commission. However, it is reported that many startup representatives refrained from filing complaints due to fears of retaliation from Google. Cholong Cho, CEO of Hwanan Saramdeul, emphasized, "We urge the Fair Trade Commission to thoroughly investigate these circumstances."

Within and outside the industry, criticism continues that Google's postponement of the commission application date for new apps from January to September next year is a 'cunning move' to block the passage of the anti-abuse law (amendment to the Telecommunications Business Act) in the political arena and to quell public criticism. A startup official said, "It’s neither a withdrawal of the commission policy nor a reduction of the commission rate like Apple," adding, "Once the criticism dies down, they will push it through again." Attorney Jeong also pointed out, "It’s a trick to prevent the passage of the Google abuse prevention law."

Accordingly, there is growing consensus that the passage of an effective Google abuse prevention law has become even more crucial. The National Assembly’s Science, Technology, Broadcasting and Communications Committee is also expected to hold a second subcommittee meeting this week to discuss related matters.