National Assembly Legislative Research Office: "KCC Must Actively Investigate Google's In-App Payment Practices"

[Asia Economy Reporter Lim Hye-seon] Regarding Google's enforcement of the mandatory 'in-app payment' policy by leveraging its monopolistic position, the National Assembly Legislative Research Office stated that "the current system should be understood and legislative and administrative supplements should be discussed."

On the 3rd, the National Assembly Legislative Research Office published the '2022 National Audit Issue Analysis Report,' presenting key policy issues and improvement measures to be focused on during this year's national audit. Expected issues for the National Assembly Science, Technology, Information and Broadcasting and Communications Committee's audit of the Ministry of Science and ICT and the Broadcasting and Communications Commission include responses to the enforcement of in-app payments, insufficient construction of 5G 28GHz base stations, improvement of compensation for communication service disruptions in value-added communication services, and policies to revitalize terrestrial UHD broadcasting.

Despite amendments to the Telecommunications Business Act prohibiting certain unfair practices by app market operators abusing their transactional position, Google has mandated in-app payments since June. In response, the National Assembly Legislative Research Office stated, "The Broadcasting and Communications Commission should actively conduct fact-finding investigations." Previously, since May 17, the Broadcasting and Communications Commission has been conducting inspections on app market operators such as Apple and One Store regarding violations of prohibited acts under the Telecommunications Business Act. Although it was announced that if violations are confirmed through inspections, the process would shift to fact-finding investigations, the Commission has not yet transitioned to fact-finding investigations.

The National Assembly Legislative Research Office pointed out, "As payment fees increase, online content providers have raised subscription prices, increasing the burden on consumers," and added, "It is necessary to consider strengthening responses to in-app payments in line with regulatory trends in the US and EU." Furthermore, it stated, "The Broadcasting and Communications Commission needs to monitor and independently identify damage cases and conduct investigations," and "Currently, when receiving reports of unfair practices in app markets, applicant information is recorded, and although this information is not disclosed, it may discourage whistleblowers, so the introduction of an anonymous information center should be considered."

Regarding plans to utilize the 28GHz band, it noted, "Considering the current market situation, how to allocate and utilize the 28GHz band should be examined." The National Assembly Legislative Research Office pointed out that although telecommunications companies were obligated to build 15,000 28GHz base stations each, they only constructed a number of base stations insufficient to meet the cancellation criteria (1,500 base stations per company).

For communication service disruptions causing public inconvenience and socio-economic confusion, it proposed requiring major value-added communication service providers to establish compensation regulations for disruptions. Regarding UHD TV distribution, it stated, "Although it is gradually expanding, there are ongoing issues such as low direct reception rates and lack of content, resulting in low perceived utility by viewers. While broadcasting networks in the metropolitan area and major cities have been established, UHD transition in the broadcasting production sector remains insufficient," emphasizing the need for a mid-term review.