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In the audit conducted last year by the National Assembly of the Communications Commission of the Information, Broadcasting and Communications Commission of Science and Technology of the National Assembly of Korea, Google Korea Chairman John Lee along with Democratic Representative Lee Won-wook, answer inquiries about “network fees”. / yunhap news
Google’s policy of forcing in-app payment and raising fees to 30% for all apps and content has become the biggest problem in the domestic content industry. However, as key witnesses and reference persons are known to not be present during this audit, there is concern that it will become national governance without substantial discussion.
◆ Should I answer ‘Morsø’ again … No assistance from Google’s national gambling representative in Korea
According to the industry on the 5th, it is known that Google Korea recently issued a letter of reasons why Nancy Mabel Walker did not attend the departmental defense of the National Assembly. This is because if you enter Korea due to a new coronavirus (Corona 19) infection, you have to go through a quarantine process such as self-quarantine, making it difficult to attend. NCsoft Vice President Jeong Jin-soo, who was adopted as a reference, also decided not to attend.
The reason the Ministry of Defense initially adopted Walker as a witness to the over-defense was to ask about the recent change in Google’s policy of paying 30% of all app and content payments as a fee. Google plans to enforce Google’s payment system by making in-app payments and expand the 30% fee that applied only to gaming apps to all content apps like webtoons and music.
With Walker’s absence, Google Korea is expected to lead John Lee, who oversees advertising sales and marketing in Korea. However, in fact, given that President John Lee is in a position that he cannot give responsible answers to such questions, there are concerns that this national government official will also become a rudimentary national official.
President John Lee was constantly criticized for responding every year to the “ Morsø ” style of avoiding responsibility.
The National Assembly reviewed the attendance of Jeong Jin-soo, Senior Vice President of NCsoft, a national gaming company, for reference, but was excluded from the final list for the position of content companies that are affected by the policy of Google.
Han Jun-ho, member of the National Assembly Committee on Communications and Dissemination of Scientific and Technological Information, and Democratic Party member Han Joon-ho expressed their regret and said: “The market environment in which even NC, with the majority of home users, have no choice but to see Google’s attention, it has already been formed.
In response, NCsoft said, “NC has no unfair contract with Google.” It is the position.
Google Play CI.
◆ Google’s 30% commission payment, the domestic content industry is booming … “Can be passed on to consumers”
In the domestic industry, there are voices that say that the payment of the 30% commission from Google and Apple App Market is unfair. If you earn 10 billion won, of which 3 billion won is a huge burden for content providers to pay as app market fees. Apple has already implemented a payment method for all mobile services in its application, and Google announced that it will be mandatory for newly registered applications for ‘in-app payment’ from January 20 next year and from October next. to have.
Domestic content industries such as Naver, Kakao, online video service (OTT) and music service complain that if Google’s pricing policy is applied as is, the content service usage fee will increase. and eventually the damages can pass to consumers.
According to the Korea Mobile Industry Association, the Google Play payment amount in Korea last year was KRW 5,999.6 billion, and the market share reached 63.4%. Apple accounts for 25% of the remaining market share, and One Store, a local application market, accounts for approximately 10%.
Representative Han Jun-ho said: “If Google increases the rate to 30% and applies the payment in the application, domestic companies and start-ups will not be able to self-sustain and will eventually be eliminated from the global market.” “We need to create an environment where we can be guaranteed and competitive.”
