[카카오VSGoogle] 'Kakao-Google Showdown' Sparks Consumer Backlash

User Inconvenience Due to In-App Payment Conflicts

[Asia Economy Reporters Minyoung Cha, Seungjin Lee] As the dispute between the national messenger KakaoTalk and IT giant Google over in-app payment policies intensifies, the Korea Communications Commission has stepped in to mediate, but the power struggle is causing unintended consequences for innocent consumers and small to medium app developers.

According to the IT industry on the 7th, the latest version of KakaoTalk (v9.8.5) still has not passed Google's review. Although users can install the update file provided by Kakao, purchases such as in-app emoticons are unavailable, forcing consumers to use external app markets like One Store or web payment pages, causing inconvenience.

Despite growing consumer complaints, Google reportedly has no plans to allow KakaoTalk’s update that violates its terms. Kakao has stated it will maintain the use of web links for the time being. A Kakao representative said, "We plan to continue guiding users to alternative payment methods for the time being."

The power struggle between the two companies is also increasing anxiety among small app developers and content and service providers. Due to Google's commission hikes, the cost of content and services has risen, and small businesses appear to be passing the commission burden onto developers or creators.

While there is hope that the Korea Communications Commission will play an active mediator role, the prevailing analysis is that Google has not violated current laws because it circumvented the ‘In-App Payment Mandatory Prohibition Act.’ Therefore, experts point out the need for legislative supplementation regarding this law.

Professor Kyungjin Choi of Gachon University’s Department of Law, a member of the Korea Communications Commission’s expert advisory group, stated, "Even if app market operators violate the prohibited acts under the enforcement decree of the In-App Payment Mandatory Prohibition Act, it will be difficult to recover commissions already collected from operators beyond imposing fines. We need to consider legislative measures to invalidate operator contracts upon violations." He also suggested that regular and long-term inspections by the Korea Communications Commission are necessary.