[Infostock Daily= Reporter Park Hyo-sun] Amid growing controversy over market-dominant operators Google and Apple's coercion of in-app payments and the imposition of 30% of commission fees, consumer damages related to mobile app payments are increasing every year. In particular, consumer damage related to Google and Apple app payments was overwhelming.
According to data submitted by the Korea Consumer Agency to Rep. Song Jae-ho of the Democratic Party of Korea(Jeju City Gap), a member of the National Assembly's National Policy Committee on the 21st, the number of consumer damage relief related to mobile app payments totaled 1,258 over the past five years, which has nearly doubled as of September this year compared to 2016.
App damages accounted for 73.1% of the total domestic app market, including △Apple Korea(38.5%) and △Google Korea(34.5%). Game development companies △NCSOFT(11.5%), △Netmarble Games(10%), and △Nexon Korea(5.4%) were surveyed in order.
By type of damage, △business operators rejected requests for refunds caused by consumer payment errors or overlapping payments, or △damages caused by minor payments without parental consent accounted for 68% of the total. It accounted for △18.4% of damage caused by unfair practices by app operators, △6.6% of damage caused by quality and AS complaints, and △5.7% of damage caused by unfair trade conditions such as labeling · advertising, prices · charges, and terms and conditions.
Over the past five years, the amount of damage related to app payments was the highest at 341 cases, with △more than 100,000 won and less than 500,000 won. It was followed by △329 small cases with less than 100,000 won, △179 cases with more than 1 million won, and △92 cases with more than 500,000 won and less than 1 million won.
Mobile game services, which account for the largest portion of the app market, suffered the most damage to consumers due to the increase in the mobile game industry and users. However, △consumer complaints about simple information provision(40.6%) were overwhelmingly higher than the results of △the application for damage relief, such as refunds(20.4%) and △contract cancellation(2.2%).
"If the scope of in-app payment is expanded due to the forced in-app payment system could increase consumer disputes over termination or refunds," Rep. Song Jae-ho said, adding, "We need to improve the system for reporting and relief procedures when canceling or refunding in-app payments."
He then called for "The FTC should thoroughly investigate the status abuse of market-dominant operators in the mobile app market and violations of antitrust laws by Google and Apple, which forced 30% of commission fees, and take a close look at the damage to small and medium-sized IT companies and app developers."
Reporter Park Hyo-sun hs1351@infostock.co.kr
