The Broadcasting and Media Communications Commission (BMCC) stated that it needs to further review whether Google’s decision to lower service fees for Korean app developers to a minimum of 10% can be considered a voluntary corrective action in the context of penalty assessments.
On August 12, the BMCC held its 27th full meeting at the Government Complex in Gwacheon, where it listened to the opinions of Google and Apple regarding violations of the Telecommunications Business Act by app market operators.
During a briefing following the meeting, questions arose about whether Google’s fee reduction policy could be recognized as a mitigating factor in penalty assessments. The BMCC responded that a review at the commission level is necessary.
Lee Sun-hee, acting head of the BMCC's Telecommunications Market Research Division, noted, "There is a need to examine whether this applies to the Korean market, among other factors, but there are aspects that make it difficult to view this as a voluntary correction, so further discussion and review by the commission are required."
Previously, on August 11, Google announced via its blog that it would introduce a 'Payment Choice Program' and reduce its service fees, which previously reached up to 30%, to between 10% and 25% depending on the type of transaction. This represents a reduction of 5 to 10 percentage points from the previous rates.
This development comes as the BMCC is proceeding with sanctions against Google and Apple for their practices of mandating in-app payments. The BMCC has been investigating whether Google and Apple violated the Telecommunications Business Act by forcing specific payment methods from August 16, 2022, to April 15, 2023.
The investigation revealed that Google and Apple effectively mandated in-app payment methods with fees of up to 30%, preventing partner companies from using 'outlink' payments through external web pages. It was also found that they imposed disadvantages on developers by refusing to register or update apps that did not accept specific payment methods and by unduly delaying app reviews.
Meanwhile, the BMCC stated that it aims to reach a decision on this matter as soon as possible.
* This article has been translated by AI.
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