KCC Opens Unfair Practice Damage Report Center
Over a Month Passed, Only One Case Reported by Korea Publishers Association
Industry Hesitant Due to High Dispute Risk
"Specific Guidelines Needed, KCC Should Conduct Awareness Survey"
[Asia Economy reporters Minyoung Cha and Seungjin Lee] The Korea Communications Commission (KCC) operated a reporting center throughout April to investigate the forced in-app payment practices of app market operators such as Google and Apple. However, it was revealed that only one case was reported, submitted by the Korea Publishing Culture Association.
Only One Case in a Month
According to the KCC on the 18th, the app market unfair practice complaint center, which opened on the 13th of last month, received only one complaint, filed by the Korea Publishing Culture Association. During the operation period of over a month, there were zero reports from the media and content industry, who are the actual victims.
Related victim companies are avoiding disputes with Google and Apple. A content industry official said, "While major operators like Spotify and Netflix might take action, it is difficult for small and medium-sized companies to step forward," adding, "If app market operators target them, they could face various sanctions such as update bans or market expulsion, making it practically difficult to report."
The KCC maintains that administrative action can only be taken when actual cases of damage are reported. Securing cases through reporting is therefore crucial, but companies suffering damage are not reporting. A webtoon industry official said, "Even without sanctions from app market operators, there is a high possibility that no substantial changes will follow after reporting, so there is concern that the process could be ineffective, which prevents reporting." Naver CEO Suyeon Choi also stated at a previous press briefing regarding in-app payment policies, "From the service perspective, although advanced legal regulations have been established, there is some disappointment regarding the process ensuring effectiveness," and added, "The KCC has issued authoritative interpretations and said it would conduct an investigation, so we are waiting for those results."
Suggestions have also been made for more specific guidelines and active promotion to facilitate the reporting of damage cases. Currently, the KCC’s application form for reporting unfair practices in app markets only provides broad instructions to describe the damage case in detail and submit supporting documents such as contracts, related materials, photos, and recordings.
A content industry official said, "There is no specific guide on what cases or situations can be reported to the reporting center, making it difficult to decide whether to file a report." An online video service (OTT) industry official responded, "I heard they are meeting through associations, but I have never received direct guidance and only learned about the reporting center through news articles."
Since it is difficult for victim companies to report, there are calls for the KCC to conduct recognition investigations through monitoring. A content industry official said, "Last year, the Fair Trade Commission completed preliminary investigations through its own research before meeting with the industry to gather opinions," adding, "Given the legal ambiguities and high risk of disputes, it is unlikely that companies will voluntarily report."
A KCC official explained, "We met with industry associations regarding the operation of the reporting center and received many opinions," adding, "Going forward, we will also meet individually with app developers, and even if it does not lead directly to reports, we will conduct recognition investigations and collect evidence to enforce policies."
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