Google, Apple Criticized for Abusing Power
The Korea Internet Corporations Association held an online meeting on mandatory in-app payment on Sept. 23. Lawyer Jung Jong-chae of SN Law, a law firm in Seoul, gave a presentation at the meeting, calling for the Korea Fair Trade Commission to keep a closer watch on Google and Apple in relation to market dominance abuse and unfair business practices.
“Although the local app market ONE store’s market share has risen from 10 percent to 18 percent this year, Google and Apple are still maintaining their monopolistic dominance considering their OS platform market influence and irreplaceability, and the expansion of mandatory in-app payment by Google will lead to fee shifting and consumer damage,” he said.
According to the Monopoly Regulation and Fair Trade Act, the policy of Apple and Google can be regarded as forced sale such as tied-in sale and abuse of business position. In fact, the Korea Fair Trade Commission imposed a penalty of approximately 33 billion won, along with a corrective order, on Microsoft HQ and Korea in December 2005 for their abuse of market dominance.
The lawyer mentioned Apple-Epic Games disputes as a reference case. Recently, Epic Games established its own payment system against the in-app payment policy of Apple and Apple removed Epic Games apps from its store, mentioning a breach of contract. Epic Games filed a suit in California, claiming that Apple violated the Sherman Antitrust Act of 1890. The court ruled in favor of both Apple and Epic Games in the injunction ruling. However, it ruled against Apple when it comes to the fee policy of Apple.
The problem is that the ongoing issue is related to online contracts with foreign corporations, that is, whether the South Korean Act on the Regulation of Terms and Conditions is applicable. The lawyer remarked with previous Supreme Court rulings that the act is applicable because the issue has an effect on domestic consumers.