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National Assembly Legislation

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  • Telecommunications Business Act
    • Competent Ministry : Korea Communications Commisstion
    • Advance Publication of Legislation : 2020-08-19
    • Opinion Submission Deadline : 2020-09-02
Reasons for Proposal

The global app market is dominated by Google and Apple, and these app market operators use their dominant positions to force in-app payments and take massive fee profits from such payments in their apps.

If app market operators force a particular payment method and impose fees, it may increase the product price and lead to consumer harm, and such operators are evading tax obligations in Korea, including corporate tax on their fee profits.

In this regard, this Act aims to include in its prohibited acts forcing a particular payment method by any app market operator with a dominant position to reduce consumer harm (Article 50, paragraph 1, subparagraph 9 newly inserted).

Major Provisions

Partially amend the Telecommunications Business Act as follows:

Newly insert the following Article 50, paragraph 1, subparagraph 9:

9. Forcing a particular payment method or imposing unfair or discriminatory conditions or restrictions by any app market operator in mediating transactions for mobile content

Go to the Bill