[Infostock Daily=Reporter Lee Hyung-jin] It has been controversial that Google has signed contracts with mobile carriers and smartphone makers to share profits.
According to Yoon Young-chan of the Democratic Party of Korea, a member of the National Assembly's Science, Technology, Information, Broadcasting and Communications Committee on the 23rd, there is a circumstantial evidence that Google uses mobile network providers and research to prevent rival apps from being preloaded on smartphones.
The anti-trust subcommittee under the U.S. House Judiciary Committee published a 449-page report on the 6th of this month, claiming that Google, Amazon, Apple and Facebook are abusing their exclusive market dominance.
According to Yoon, the report said that Google will require smartphone manufacturers to preload certain apps such as Google Search and Google Play Store, and prevent competing apps for search services from being preloaded and installed.
In 2016, the European Commission (EC) raised the charges, saying, "Google has a ban treaty with the manufacturer to prevent the mobile phone manufacturer from mounting the competing operating system (OS) on mobile devices." These treaties are called the Anti-Fragmentation Agreement or the Anti-Fork Agreement.
"Google is technically taking measures against manufacturers through the fake agreement to monopolize OS and preventing manufacturers and telecommunication companies from installing competitive apps," Yoon said. "NAA shares search advertising revenue with manufacturers and telecommunication companies such as Samsung and LG."
He also raised the issue during an inspection of the National Assembly of Science and Technology on the previous day, saying, "Google will eventually face problems such as tax avoidance, forced approval of in-apps, and free ride on the network," adding, "Google has locked everyone in its ecosystem and does not allow other freedom."
"According to Google Korea's data, mobile network operators are currently charging up to half of their in-app payment fees from Google Play in return for providing a means of payment by charging telecommunication services," said Rep. Lee Young, a member of the People's Power, during a parliamentary inspection on the previous day.
Currently, game companies pay Google 30 percent of their in-app payments as commission fees. Until now, Google had been known to collect all of its 30% commission fees, but it was revealed that up to 15% went to mobile carriers.
Jang Seok-young, the second vice minister of science, technology, information and communication, who attended the parlimentary inspection, replied, "I should check with an additional estimate," when he pointed out, "Isn't it a high profit for mobile carriers to pre-load Google services?"
In the face of controversy over sharing profits between Google and the telecommunications industry, the Korea Internet Companies Association and the Korea Startup Forum issued a statement, criticizing the four mobile carriers and mobile phone manufacturers for joining the power trip, including Google and Apple's forced payment policy for in-apps.
The two organizations pointed out, "The three telecommunication companies, which have been sharing in-app payments while ignoring the public's burden of telecommunication fees, should immediately stop redoubling the public's damage," and added, "Before claiming competition in the app market through One Store, be responsible for the actions that have enjoyed reflective profits from commission income."
Reporter Lee Hyung-jin magicbullet@infostock.co.kr
