KPA Files Class Action Against Google Following Apple, Says "Unfair Monopoly Practices to Be Judged in U.S. Court"

KPA Files Class Action Lawsuit Against Google in U.S. Court
Second Lawsuit Following Apple on June 4
"Profiteering Through Excessive Commissions of Up to 30 Percent"

The Korean Publishers Association (KPA), in collaboration with the Korea Electronic Publishing Association, has filed a class action lawsuit against Google. Following a class action lawsuit filed against Apple on June 4, with Jihyang Law Firm in Korea and Hausfeld LLP in the United States serving as legal representatives, the KPA announced on June 10 that it has now filed a class action lawsuit against Google in the United States District Court for the Northern District of California.

On the afternoon of the 10th, a briefing session on the class action lawsuit against Google and Apple in the United States was held at the Korean Publishers Association (KPA) located in Jongno-gu, Seoul. From the left: Sangjun Han, Executive Director of Policy at KPA; Hwancheol Kim, President of the Korea Electronic Publishing Association; Cheolho Yoon, President of KPA; Eunwoo Lee, Attorney at Jihyang Law Firm; Byungju Lee, Attorney; Yongsu Park, Executive Director of Electronic Publishing and Policy at KPA. Korean Publishers Association.

The KPA is challenging Apple and Google's imposition of in-app payment requirements and the application of high commission rates of up to 30 percent. The KPA pointed out, "Since Google and Apple announced their policy to expand the scope of mandatory in-app payments and apply commission rates of up to 30 percent, they have engaged in monopolistic practices by maintaining excessively high commission rates." According to the KPA's estimates, the damages amount to between 60 billion and 80 billion won per year. The KPA explained that these actions violate the U.S. Unfair Competition Law and Korea's Monopoly Regulation and Fair Trade Act, and that it is seeking corrective measures as well as compensation for past damages.

This lawsuit is a class (representative) action, with the two associations serving as lead plaintiffs on behalf of all domestic app developers. The KPA explained that if the U.S. court recognizes the class action and a final verdict is reached in favor of the plaintiffs, the effect will extend to all app developers, including those who did not participate in the proceedings. The KPA stated, "There are sectors such as gaming and music where the commission burden is even greater than in publishing, but due to concerns about retaliation from Apple and Google, it has been difficult for these sectors to take action. As the KPA is relatively less influenced by Apple and Google, we have taken the lead."

An attorney from Jihyang Law Firm predicted a high likelihood of success, noting, "In previous class action lawsuits filed in the United States against Apple and Google, settlements were reached to reduce the existing 30 percent commission rate to 15 percent." According to the attorney, assuming that Google and Apple earned 80 billion won per year in commissions at the previous 30 percent rate, a ruling to lower the commission rate to 15 percent would result in 40 billion won being returned to domestic app developers. However, the attorney noted that the amount of damages may vary depending on the determination of actual revenues and the appropriate commission rate during the trial process.