Different Pricing for Single-Volume eBook Service Causes Issues
France Strengthens Regulation with Fixed Pricing System
Naver and Kakao Focus Capabilities
Actively Targeting the World's 2nd Largest Comics Market
[Asia Economy Reporter Seungjin Lee] Korean webtoons, which are rapidly taking root in France, the world's second-largest comic market, have become embroiled in an unexpected controversy over the "fixed book price system." Local media have even warned that "webtoons could lead to major disruptions in the book market."
Webtoons Clash with France's Fixed Book Price System
According to the Korea Creative Content Agency on the 12th, French authorities are reportedly examining whether webtoon platform services violate the fixed book price system. The controversy arose because webtoons, which are delivered online, offer volumes as e-books with different pricing, raising issues under the fixed book price regulations.
In France, the only goods legally protected in price are baguettes and books, reflecting strong social interest in protecting the publishing market. France has enforced the fixed book price system since 1981.
Publishers set and display fixed book prices, and retailers may discount up to 5% off these prices. Electronic books rented or subscribed to via networks are excluded from the fixed book price system. However, since March, Kakao Piccoma, which launched webtoon services in France, has been reported to potentially violate the fixed book price system by offering volumes as e-books.
A Kakao Piccoma representative stated, "We have not yet engaged in discussions with authorities regarding the fixed book price system," adding, "If requested by authorities for investigations, we will cooperate sincerely."
"Webtoons Cause Confusion in the Book Market"
France plans to strengthen regulations on Korean webtoon platforms under the pretext of the fixed book price system. Because webtoon platforms use their own coins as payment methods, prices vary depending on how users consume the same work. Coins offer discounts based on recharge amounts and are generated for free periodically, creating an economic system completely different from traditional publishing businesses. This system is seen as potentially causing market confusion.
Last month, a French media outlet criticized the webtoon platform's payment system, stating, "Webtoons exist only in digital form, effectively escaping fixed book price regulations." It further pointed out, "Users can accumulate coins by waiting for a certain time, which could become a major issue for the book market, from small bookstores to online sales platforms." The media urged authorities to regulate the webtoon platform model.
Naver and Kakao "Will Overcome Regulations"
Although French authorities are intensifying regulations on webtoon services, Naver and Kakao plan to focus more on the French market. France ranks as the world's second-largest market for paper comics as of 2020, reflecting a strong love for comics. The growth potential of webtoons, which are just emerging, is also considered vast. In France, Korean-affiliated webtoon platforms such as Webtoon Line (Naver-Line) and Delitoon (Kidari Studio), along with local companies Webtoon Factory, Verytoon, and Izneo, compete without a clear market leader. Since March, Kakao Piccoma has joined the competition, intensifying the rivalry.
Naver plans to establish Webtoon EU (tentative name), a European headquarters, in France in the first half of this year. In July, it will hold webtoon contests in France and later in Germany to discover promising webtoons and creators, aiming to expand the market across Europe. Kakao Piccoma will introduce popular webtoons, including intellectual property (IP) owned by Kakao Entertainment, locally. According to the Korea Creative Content Agency, the European digital comic market is steadily growing each year and is expected to account for 26.6% of the global market this year. Among European countries, France, with a comic market size of $298 million (357 billion KRW) last year including digital and paper comics, is expected to serve as a hub for the spread of digital comics in Europe.
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