Google and Apple's 30% Commission Is Illegal... Tim Sweeney Says "Korea Should Apply the Same"

Tim Sweeney Calls for Korea to Define 30% App Store Commissions as Unfair Practices
Epic Games CEO Urges Stronger Safeguards Against Google and Apple Monopoly

Tim Sweeney, CEO of the global gaming giant Epic Games, who visited Korea, argued that Korea should also define Google and Apple's 30% commission on app payments as unfair practices, just as the United States has done.

On the 27th, Sweeney delivered a keynote speech at the "Policy Meeting to Promote Fair Competition in Domestic App Markets," hosted by Democratic Party lawmakers Lee Junghun and Kim Hyunjung at the National Assembly Members' Office Building, where he made these remarks.

At the National Assembly Members' Office Building on the 27th, participants are taking a commemorative photo before the start of the "Policy Meeting to Promote Fair Competition in Domestic App Markets," hosted by Democratic Party lawmakers Lee Junghun and Kim Hyunjung. Photo by Yonhap News

This policy meeting, organized by the Coalition for App Fairness (CAF)-a global non-profit organization that includes Epic Games and Spotify as members-was arranged to share cases of harm caused by forced in-app payments by global big tech companies and to explore ways to create a desirable app ecosystem.

Epic Games, the developer of the popular game "Fortnite," has actively brought attention to the monopolistic practices of Google and Apple in the app ecosystem and has been engaged in lawsuits for several years.

Sweeney stated, "While it is true that the U.S. government has recently been protecting its domestic companies by erecting trade barriers, it cannot demand that Korea accept practices deemed illegal in the United States," and added, "Various safeguards must be established under Korea's legal system to prevent such trade retaliation from occurring."

In 2021, Korea became the first country in the world to introduce a revised Telecommunications Business Act that prohibits the mandatory use of in-app payments, putting a brake on Google and Apple's practice of imposing a 30% commission on apps listed in their stores. However, there have been repeated claims that Google and Apple are circumventing the law by charging similar levels of commission on revenue generated through third-party payment systems.

In April, the U.S. District Court for the Northern District of California ruled that the 27% commission Apple imposed on third-party external payments in the antitrust lawsuit filed by Epic Games was unjustified.

Kim Horim, Vice Chairman of the Information and Communications Committee at the Citizens' Coalition for Economic Justice, said, "Domestic game companies have paid 28.5% of their mobile game revenue as commissions to Google and Apple over the past 10 years," and requested, "Realistically, this should be reduced to around 10%, and for this, the litigation data from Epic Games is necessary."

Assemblyman Lee Junghun, who hosted the forum, stated, "Countries around the world, including the United States, Japan, and the European Union, are already accelerating institutional reforms to ensure fair competition in app markets," and emphasized, "Korea must also protect the rights and interests of developers and consumers, and strengthen the institutional foundation for a free and fair market competition order."