Assemblyman Hong Jeong-min: "Regret over Google and Apple's 'In-App Payment' Tricks... Broadcasting Commission Must Take Follow-Up Measures"

[Asia Economy Reporter Kang Nahum] Hong Jung-min, a member of the Democratic Party of Korea who drafted the 'Google Gapjil Prevention Act (Amendment to the Telecommunications Business Act),' criticized Google and Apple for cleverly circumventing the law to enforce mandatory in-app payments and urged authorities to take swift follow-up measures.

On the 7th, Representative Hong stated in a press release, "App market operators are leveraging their monopolistic positions to enforce specific payment methods and raise fees, thereby shifting the burden onto developers and users," adding, "We deeply regret the app market operators’ tricks and tyranny, who disregard the laws and policies born from long discussions to prevent this and instead introduce new policies."

Earlier, Google implemented its in-app payment policy starting from the 1st, banning outlinks within apps that induce external payments. App developers who do not adopt Google's in-app payment system (with fees up to 30%) or third-party in-app payment methods (with fees up to 26%) cannot submit app updates, and from June 1st, their apps will be removed from Google Play.

Another app market operator, Apple, has also effectively joined the enforcement of mandatory in-app payments by introducing a third-party payment method that does not allow outlink payments.

The Korea Communications Commission (KCC) issued an authoritative interpretation stating that these operators’ mandatory in-app payment policies may violate the law. In particular, banning outlinks within apps that induce external payments could be considered an act of "forcing a specific payment method" under Article 50, Paragraph 1, Subparagraph 9 of the Google Gapjil Prevention Act.

Representative Hong pointed out, "Concerns about the monopolistic status of app market operators have been continuously raised," and added, "Despite the amendment and enforcement of the 'Google Gapjil Prevention Act,' Google resorted to tricks by changing internal policies, which ultimately increased the burden on users who use the app market."

He continued, "We welcome the KCC’s authoritative interpretation that judged the actions of Google and other app market operators to have potential illegality," and asserted, "Following this decision, thorough inspections and investigations should be conducted promptly to determine violations of the law, and corrective orders and enforcement fines should be swiftly imposed for any violations."

He further stated, "If swift action by the KCC does not follow, it will be unavoidable to criticize the KCC for neglecting the burdens on both app developers and users," and urged, "To realize the purpose of the amended law aimed at fostering a healthy app ecosystem where consumers and creators actively participate, we once again call for prompt and strict follow-up measures by the KCC."