Consumer Groups: "Domestic Companies Use Google's In-App Payment Fee Increase as an Opportunity"

[Asia Economy Reporter Kang Nahum] Domestic consumer organizations have criticized Korean content companies for raising content prices following the forced implementation of in-app payments by app market operators such as Google and Apple, calling it a "betrayal of responsibility and duty to consumers" and urging them to stop the price hikes.

The consumer organization Consumer Sovereignty Citizens' Council issued a statement on the 14th, urging, "Content companies including Google are only looking out for their own profits, neglecting their responsibility and duty to consumers."

The organization pointed out, "The regulatory authority, the Korea Communications Commission, is currently investigating 'market abuse,' and consumer groups are filing lawsuits and complaints against Google. In this situation where authorities and consumer groups are responding to reduce consumer damage, it is a serious problem that major platform companies are using Google's policy changes as an opportunity to raise their fees simultaneously."

In fact, Naver Webtoon raised the price of one cookie from 100 won to 120 won on Android, and Kakao Entertainment and RIDI also increased the cash price from 1,000 won to 1,200 won on their Android apps. Online video service (OTT) providers also raised usage prices within their Android apps one after another.

Consumer Sovereignty Citizens' Council also expressed concerns about Google's potential dominance in the domestic music market. Citing a survey by app analytics firm WiseApp, they noted that in April last year, the monthly user difference between Korea's number one music platform Melon and YouTube Music was 2.33 million, but after Google announced changes to its in-app policy, the gap sharply narrowed to 630,000 last month, just over a year later.

The Consumer Sovereignty Citizens' Council emphasized the role of major platform companies. The organization stated, "'KakaoTalk' is the only one maintaining the in-app outlink payment method prohibited by Google's policy, actively trying to protect consumers," adding, "While Google bears primary responsibility for enforcing in-app payments, domestic platform giants should also contribute to blocking Google's unfair policies, but their behavior of passing the burden onto consumers through commission fee increases is rightly subject to criticism."

They continued, "Domestic platform giants must consider the impact on consumers and, to respond to Google's forced 'in-app payment' policy, stop raising prices and fulfill their responsibility and duty to consumers," emphasizing, "If they persist in price hikes solely following the policy decisions of the multinational company Google, which ignores domestic laws, they will become targets of public criticism."