"Google Gapjil Prevention Act August Is Practically the Last Chance" IT Industry Waiting Anxiously

[Image source=AP Yonhap News]

The IT industry is on high alert over whether the Google Gapjil Prevention Act (Amendment to the Telecommunications Business Act) will pass the National Assembly plenary session.

According to the National Assembly and the IT industry on the 17th, the Google Gapjil Prevention Act is expected to be submitted to the Legislation and Judiciary Committee on the 24th and possibly pass the plenary session on the 25th. The amendment prohibits app market operators from abusing their position to force mobile content providers to use a specific payment method.

Although the opposition party raised issues citing trade friction with the United States, the controversy has subsided as U.S. senators have introduced similar bills. However, Google is lobbying against the bill, and disagreements between the Fair Trade Commission and the Korea Communications Commission continue, making it difficult to be at ease. The Fair Trade Commission holds the position that the Korea Communications Commission regulating unfair practices of app markets constitutes 'overlapping regulation.'

The industry views this plenary session as the last real opportunity. This is because Google will enforce its 'in-app payment' policy, which mandates the use of its payment system, starting in October. Previously, Google announced it would delay the policy until April next year only for app developers who apply, but the prevailing view is that very few companies in Korea can meet this condition. Content creators, including the Korea Webtoon Industry Association, appealed to the Legislation and Judiciary Committee, saying, "If the urgent bill loses momentum due to surrounding circumstances and disputes over departmental authority, the domestic content ecosystem will collapse, leading to an irreversible worst-case scenario."

In particular, the industry emphasizes the importance of the timing of the Google Gapjil Prevention Act's passage. If the bill does not pass this time, existing apps will be forced to adopt the in-app payment system, and apps released after October will have to start under Google's dominance. If the bill passes after the policy is implemented, the system will have to be revised twice. Kwon Se-hwa, Policy Director of the Korea Internet Corporations Association, said, "If the law passes after in-app payment is enforced, market confusion will occur, and the damage will increase for content creators and consumers."