In-app payment prevention law debate restarts…Google responds to “fee cut”

While Google is pushing for a plan to use only its own in-app payment method, the National Assembly also resumed discussions on related legislation. Then, Google is fiddling with a’fee cut’ card to stop legislation.

On the 23rd, the National Assembly Science and Technology Information Broadcasting and Communication Committee held a bill review subcommittee and began discussions on the amendment to the telecommunications business law called the Google In-App Payment Prevention Act.

In addition, a total of 7 proposals, including the amendment proposed by the Democratic Party’s Rep. Hong Jeong-min, are the subject of discussion. The problem of compulsory Google in-app payment has emerged as a hot potato in the overdefense since last year’s examination of the additional budget bill before the government audit.

In September of last year, Google aroused controversy when it announced that it would force only its own payment method from January 20 to all digital contents in the app market. If Google forces in-app payment, a fee equivalent to 30% of the transaction amount is charged.

After that, discussions on the bill were temporarily suspended as Google decided to postpone related policy changes until October this year only in Korea.


■ In-app payment was forcibly delayed, but there is still concern about damage to users

However, since the nature of the policy to only use the company’s in-app payment method has not changed, the need to discuss related legislation has been steadily raised within the National Assembly.

According to the results of the Ministry of Science, ICT and ICT survey results, Rep. Park Seong-joong, who is in charge of the over-defense people’s strength, said that if only Google’s payment method, which applies 30% at a time, is applied, the commission will increase to 88.5 billion won and up to 156.8 billion won I was concerned.

This means that the profits of domestic digital content providers will inevitably decrease as fee sales increase due to Google’s unilateral app market policy decision.

In addition, Rep. Seung-rae Cho, who is in charge of the Democratic Party’s secretary with the Ministry of Defense, pointed out that based on a survey conducted by the Korea Communications Commission, domestic app developers are experiencing “bad problems,” such as rejection of registration, delay in review, and deletion of apps.

Global dinosaur companies are already in a situation where they cannot improve the fair competition structure, and above all, they are in a situation that will lead to serious user damage. It is explained that not only domestic digital content providers will be in trouble right now, but the damage can be passed on to users.


■ Google proposed to review domestic fee cuts, but…

As the National Assembly’s legislative debate resumes, Google seems to be in a hurry. Google said last week that it would go to a lawmaker’s office in the Department of Defense and consider a plan to lower the in-app payment fee rate.

While Apple announced in November last year that it would cut app store fees for small and medium-sized developers, it seems that Google is trying to block legislation, saying that it can apply Apple’s global policy separately to Korea.

An official from the overdefense said, “After consultation with the head office, Google could pursue a plan to lower the fee rate compared to other app market operators in Korea.” It can be reloaded, and excluding external payment methods other than its own payment methods is still no different from being exposed to user damage.”

He added, “It is difficult to predict because opinions may differ between the offices that initiated the amendment to the business law, but since Google’s suspended grace period is shrinking, the debate on a definite bill for user protection will continue.”

Several types of bills have been proposed, and discussions on the range of users in special areas are complicated even within the value-added communications business area of ​​the App Market, and additional reviews are expected to take place within the National Assembly starting with the subcommittee on that day.

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Also, the fact that the Fair Trade Commission is struggling with the law to prevent in-app payment through the revision of the telecommunications business law is also a problem to be solved.

Digital content-related associations, including the Internet Enterprise Association, said, “Please keep the promise of the National Assembly and the defense to protect app developers and consumers by prohibiting the force of unfair payment methods in the app market.” “Please make an effort so that the revised bill can be passed through the National Assembly as soon as possible by completing the bill review.”





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