Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
Will conflict over Google fees with US escalate into trade feud?
By Kim Bo-eun
An image of Google Play store / Korea Times file
By Kim Bo-eun
Attention is growing over moves to prevent Google from carrying out its new app store policy here, after it was revealed the U.S. authorities had warned against a recently proposed bill targeting the American firm. Concerns exist over the possibility of conflict with the U.S. developing into a bigger trade feud, given the sentiment against dominant tech companies here.
According to Rep. Chun Jae-soo of the ruling Democratic Party of Korea, the Korean Embassy in the U.S. sent documents to the ministries of foreign affairs, trade and ICT, and the Korea Communications Commission last month, notifying them of discussions on the matter with the U.S. Trade Representative (USTR).
The USTR is a government agency in charge of developing and advising on trade policies to the U.S. president. It also conducts trade negotiations with partnering countries and coordinates trade policy within the administration.
A member of the USTR is said to have spoken over the phone with an official in charge of commerce at the Korean Embassy, conveying concerns over developments in Korea to pass a bill that targets a specific company.
Google had planned to introduce a 30 percent fee on app developers here for payments made on Google Play store in January. This was met by a fierce backlash from app developers, and lawmakers had prepared bills to bar the IT giant from carrying out this policy.
The skirmish prompted Google to delay the introduction of the fee until October next year.
Lawmakers initially appeared determined to pass the revisions to the regulations in the Telecommunications Business Act, but activity for this at the National Assembly has slowed down in recent months.
The Assembly National Policy Committee's stance is that Google can be regulated with existing antitrust laws and regulations on telecommunications businesses.
This indicates lawmakers may give up on the revisions, but they will still seek to regulate Google with existing laws.
The Fair Trade Commission is separately looking into Google's possible violations of the existing telecommunications act.
Government officials maintained a low-key response to the issue.
"It is our stance that we deal sternly with cases in which businesses violate the Telecommunications Business Act and exert harm on local users of services," an official at the Korea Communication Commission said. The commission is in charge of imposing sanctions for violations of the act.
"Yet measures to pass revisions to the act were taken at the National Assembly so we are not in a position to comment on the issue."
Cheong In-kyo, a professor of international trade at Inha University said, "The USTR speaks out when it finds U.S. companies encountering difficulties in conducting business in foreign markets."
"But in the case of Google, controversies surrounding its domination are seen around the world, and activity is taking place in Europe to put the brakes on this. Both sides need to be taken into account."