US expressed concerns over S. Korea’s efforts to curb Google: lawmaker

The US government has expressed worries over South Korean lawmakers’ move to block a new pricing policy of US platform giant Google, a lawmaker claimed Monday.

According to Rep. Jeon Jae-soo of the ruling Democratic Party of Korea, multiple government ministries and agencies received a letter from the Korean Embassy in the US that summarized a phone conversation between the embassy’s official and the deputy United States trade representative.

The discussion, classified as confidential, included the US official‘s conveying of Washington’s concerns over a recent legislative move in Seoul to affect Google‘s in-app purchase policies, effective from October in 2021.

Google has recently announced that it would charge 30 percent transaction fees on all in-app purchases on Google Play. Google added it would ban app operators from using other payment methods in mobile transactions on its platform.

Amid increasing concerns from the industry, the Fair Trade Commission of South Korea began reviewing Google’s plan for potential trade rule violations.

A group of South Korean lawmakers also tabled a motion to amend the Telecommunication Business Act, later backed by members of the Cabinet, that could prevent Google from banning the use of payment options other than its own Google Pay.

Members of the main opposition party, however, raised concerns that it could conflict with the terms included in the free trade agreement between the two nations.

The move comes after the Telecommunications Business Act was separately revised in May to make large online content service providers, such as Netflix, responsible for providing stable services to users.

By Shim Woo-hyun (ws@heraldcorp.com)