Korean game and app groups urge Google headquarters to discuss developer damage recovery
In short
The Korea Mobile Game Association, domestic app developers and civic groups said on October 6 they filed a request for witness questioning of Yun Gu, Google Korea's chief executive, ahead of the National Assembly's Science, ICT, Broadcasting and Communications Committee audit. They called on Google's US headquarters to confirm it knows about Korean developers' damage-recovery demands and to join talks on resolving them. They also said regulators' fines and corrective measures are a separate matter from past damages, and that Yun is due to appear at the National Tax Service audit on October 22.
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The Korea Mobile Game Association, domestic app developers and civic groups said on October 6 that they had submitted a request for witness questioning of Yun Gu, Google Korea's chief executive, in connection with the National Assembly's Science, ICT, Broadcasting and Communications Committee audit, and called on Google's US headquarters to take part in talks on recovering damages claimed by Korean developers. [ 1 , 2 , 3 ]
The groups asked the committee to establish whether Google's US headquarters is aware of the developers' damage-recovery demands, whether those demands were formally conveyed to headquarters through Google Korea, and whether headquarters is willing to join consultations for damage recovery and a collective resolution. Yonhap reported that they also said that if Yun explains he cannot give specific answers because the matter is decided by headquarters, the committee should formally deliver the developers' demands to headquarters and request its position in writing. [ 1 , 2 ]
Alongside the audit, regulatory procedures are under way. Documents 1 and 2 both report that the Broadcasting Media and Communications Committee is deliberating fines and corrective measures over alleged violations of the Telecommunications Business Act related to forcing specific payment methods, and that the Fair Trade Commission is examining alleged abuse of market dominance in Google's app market. Document 2 says the broadcasting committee's review covers Google and Apple, while document 1 refers to Google only. [ 1 , 2 ]
The groups argued that the regulatory procedures and the developers' damage-recovery issue should be treated separately, saying a government fine or future corrective measures would not by itself resolve the harm individual developers claim to have suffered under past app-market policies. They called for the audit to examine whether a competitive environment now allows Korean developers to choose payment methods freely, and what recovery measures exist for past damage, and said the discussion should extend beyond fines to restoring competition, preventing recurrence, damage recovery and tax responsibility. [ 1 , 2 ]
Yonhap quoted the groups as saying: “The key question running through the two audits is whether Google is fulfilling its responsibilities to Korean society commensurate with the economic benefits it gains in the Korean market.” [ 2 ]
Yun is also due to appear as a witness at the National Tax Service audit held by the National Assembly's Strategy and Finance Committee on October 22. The groups said that audit should verify the attribution structure of Google's revenue generated in Korea, transactions between Google Korea and overseas affiliates, the calculation of domestic taxable income and the appropriateness of corporate tax filings, and that allegations of corporate tax avoidance or evasion require objective investigation and verification. The documents did not include any response from Google or Google Korea to the demands. [ 1 , 2 ]
Why it matters
The parliamentary audit gives Korean developers and civic groups a formal channel to press Google's US headquarters over past app-market policies, alongside the separate proceedings at the telecommunications and fair-trade regulators. The October 22 tax audit extends the scrutiny to how Google's Korean revenue is attributed and taxed. Neither document records a response from Google to the demands.
Key facts
- The Korea Mobile Game Association, domestic app developers and civic groups submitted a request for witness questioning of Yun Gu, Google Korea's chief executive, to the National Assembly's Science, ICT, Broadcasting and Communications Committee ahead of its audit on October 6. [ 1 , 2 , 3 ]
- They asked the committee to confirm whether Google's US headquarters is aware of Korean developers' damage-recovery demands and whether those demands were formally passed on through Google Korea. [ 1 , 2 ]
- They asked whether Google's headquarters is willing to take part in talks on damage recovery and a collective resolution. [ 1 , 2 ]
- Yonhap reported they said that if Yun states he cannot answer because the matter is decided by headquarters, the committee should formally deliver the demands and request a written headquarters position. [ 2 ]
- The Broadcasting Media and Communications Committee is deliberating fines and corrective measures over alleged violations of the Telecommunications Business Act related to forcing specific payment methods, while the Fair Trade Commission is examining alleged abuse of market dominance in Google's app market. [ 1 , 2 ]
- The groups said regulatory fines and future corrective measures are separate from the damage recovery sought by developers over past app-market policies. [ 1 , 2 ]
- Yun is also scheduled to appear as a witness at the National Tax Service audit held by the National Assembly's Strategy and Finance Committee on October 22. [ 1 , 2 ]
- The groups said the tax audit should examine the attribution structure of Google's Korean revenue, transactions between Google Korea and overseas affiliates, the calculation of taxable income and the appropriateness of corporate tax filings. [ 1 ]
Confirmed by several sources
- The Korea Mobile Game Association, domestic app developers and civic groups submitted a witness-questioning request concerning Google Korea chief executive Yun Gu ahead of the October 6 parliamentary audit and called on Google's US headquarters to engage in damage-recovery talks. [ 1 , 2 , 3 ]
- They asked that the audit verify whether headquarters knows about the developers' demands, whether they were formally delivered via Google Korea, and whether headquarters will join talks on recovery and a collective resolution. [ 1 , 2 ]
- The Broadcasting Media and Communications Committee is reviewing fines and corrective measures over alleged Telecommunications Business Act violations tied to forced payment methods, and the Fair Trade Commission is examining alleged abuse of market dominance in Google's app market. [ 1 , 2 ]
- The groups said fines and corrective measures are a separate matter from past damages claimed by individual developers. [ 1 , 2 ]
- Yun Gu is due to appear at the National Tax Service audit on October 22 as well. [ 1 , 2 ]
Still unclear
- Google's position on the demands and on participating in damage-recovery talks. None of the documents contains any statement or response from Google, Google Korea or Yun Gu.
- Whether the witness-questioning request will be accepted and how the committee will handle it. The documents report only that the request was submitted; no committee decision is cited.
- The scope of the Broadcasting Media and Communications Committee review. Document 1 refers to Google's app market alone, while document 2 says the committee is reviewing both Google and Apple for forcing specific payment methods.
- Whether the tax-related allegations against Google Korea are substantiated. Document 1 says objective investigation and verification by the audit and tax authorities are needed; no findings are reported.
What local media are saying
Timeline, local time
- Kyunghyang Games reports that the Korea Mobile Game Association, affected developers and civic groups submitted a witness-questioning request for Google Korea chief executive Yun Gu ahead of the Science, ICT, Broadcasting and Communications Committee audit. [ 1 ]
- Yonhap reports the groups' call for Google's US headquarters to take part in damage-recovery talks. [ 2 ]
- Chosun Ilbo carries a summary of the same call. [ 3 ]