Google-KakaoTalk Conflict Sparks... KCC Shifts to Fact-Finding Investigation Targeting Google

The Korea Communications Commission Likely to Notify Operators Today
Mandatory Notification 7 Days Prior... Expected to Begin Next Week

[Image source=Yonhap News]

[Asia Economy Reporter Minyoung Cha] The Korea Communications Commission (KCC) is converting its existing fact-finding inspection of Google into a formal fact investigation. This move comes after Kakao, which had provided outlink guidance, was prohibited from updating by Google, creating clear grounds for investigation due to a definite prohibited act.

According to the KCC on the 9th, the commission plans to convert the fact-finding inspection of Google into a fact investigation and notify the business operator accordingly. However, since the operator must be notified at least seven days in advance, the actual investigation is expected to begin next week.

If specific illegal acts are confirmed during the fact investigation, the KCC may impose administrative measures such as corrective orders or fines. The KCC’s procedural steps include conducting a fact-finding inspection → confirming illegal facts → converting to a fact investigation → deliberation and resolution by the commission.

In early last month, the latest Android version (v9.8.5) of KakaoTalk failed to pass Google’s review, resulting in an inability to update. This was because Kakao opposed Google’s in-app payment policy implemented from June. Google has allowed third-party payments within apps in addition to its own in-app payments but prohibited outlink payment methods, warning that violations could lead to removal from the Google app market. It also banned expressions that guide or encourage web payments.

After the implementation of the in-app payment policy, KakaoTalk continued to notify users within the app that "using the web allows purchasing cash at the same price as before," providing outlinks connecting to web pages. In fact, Kakao raised the price of KakaoTalk Emoticon Plus on Google Play from the previous 4,900 KRW per month to 5,700 KRW per month, while selling it on the web page for 3,900 KRW per month.

As conflicts between the two companies intensified and concerns over consumer harm grew, the KCC directly intervened as a mediator. Subsequently, Kakao, which had opposed Google’s mandatory in-app payment policy, took a step back on the 13th of last month. Kakao deleted the outlink notices from the KakaoTalk app, and Google agreed to allow KakaoTalk app updates on Google Play.

Although the conflict has been temporarily resolved, the KCC judged that Google’s actions against Kakao violated legal prohibitions. It viewed the refusal of web payment outlinks as an inducement to a specific payment method and an unjustified delay in app review.