[The Editors' Verdict] With Lobbying Ineffective, Google Resorts to Intimidation

[Asia Economy Reporter Myung Jin-kyu] Is a tomato a fruit or a vegetable? In 1882, the United States passed a tax law amendment that maintained zero tariffs on imported fruits but imposed a 10% tariff on imported vegetables. At that time, tomatoes were classified as vegetables in the U.S. Because tomatoes were more commonly used in processed products like ketchup and paste rather than eaten as a dessert like fruits, they were customarily treated as vegetables.

When tariffs were suddenly imposed on tomatoes, importers filed lawsuits. They presented scientific evidence that tomatoes are fruits, leading to fierce legal battles that reached the Supreme Court. The federal Supreme Court ruled that tomatoes are "botanically fruits" but "legally vegetables."

The reason behind this conclusion was the influence of lobbyists. As lobbyists represent interest groups and intervene in the legislative process, absurd situations that defy common sense occur in the U.S. For example, under U.S. school lunch regulations, pizza is classified as a vegetable because the tomato paste used in pizza is defined as a vegetable. Although the Obama administration proposed an amendment to the school lunch law to reduce junk food used in school meals by redefining pizza, due to massive lobbying by the food industry, pizza is still treated as a vegetable. Scientific facts and common sense change when judged by the standards of law.

Kansas State University conducted a study on U.S. corporate lobbying a few years ago and announced that for every dollar companies spend on lobbying, they can reduce taxes by up to $220. This amounts to a 22,000% return. Companies gain more profit by blocking regulatory legislation and modifying existing laws to suit their interests than through their business activities.

As of 2020, about 12,000 registered public lobbyists are in Washington. This means there are nearly 22 lobbyists per member of Congress. The total annual spending on lobbying in the U.S. is estimated to be around 4 trillion won and is increasing by 20-30% every year. This figure only includes registered lobbyists and the related market. When including unregistered and secretive "shadow lobbyists," it is widely believed that at least 30,000 lobbyists operate in the U.S. lobbying market. The total lobbying expenditure is estimated to be twice as much, about 8 trillion won.

The U.S. lobbying market, which was once focused on the primary and secondary industries, is now concentrated on big tech companies such as Google, Netflix, Meta (formerly Facebook), and Amazon. Especially Google, which is heavily affected by issues related to regulation, antitrust, and advertising laws through platforms like YouTube, continuously increases its lobbying expenses every year. Last year, Google spent a total of $9.6 million on lobbying, a 28% increase from the previous year. This amounts to about 13 billion won. Most of this spending is known to be used to block regulatory legislation and resolve antitrust issues.

In South Korea, lobbying itself is illegal. Therefore, whenever sensitive issues arise, Google meets with government ministries and the National Assembly, promising investments and cooperation with Korean companies while wearing a smiling mask. If this does not work? Based on its market influence, it changes to an angry mask and resorts to intimidation. YouTubers who earn revenue from Google create videos attacking the National Assembly daily, raising their voices.

In the U.S., lobbying has the power to classify pizza as a vegetable. Since lobbying is impossible in South Korea, intimidation is used instead. Can Google make pizza a vegetable in the Korean National Assembly as well? We know that it is impossible by normal means.