Big Tech expands octopus feet and spreads antipathy towards paid original colors
As big tech companies expand their business in all directions and reveal their paid nature, criticisms such as "infringement of alleys" and "the harm of monopoly is greater than innovation" are growing. Solutions that call for sophisticated regulations to reduce the side effects of monopoly and protect innovation and competition are gaining ground.
According to the IT industry on the 15th, Google, which occupies more than 70% of the domestic app market, is pushing to expand the mandatory in-app payment and 30% fee charge, which was limited to the game industry, to all digital content, and the global backlash including Korea has been meted out. are buying
The view is that it is a typical method of big tech companies that tame users with a free service and then build a monopoly market share, eventually charging a service fee and increasing the price by surprise.
In response, the National Assembly, led by the ruling party, is exerting its efforts with the goal of passing a bill to amend the Telecommunications Business Act to block the forced in-app payment by Google and Apple at the plenary session on the 25th. In the United States, six senators from both parties proposed the 'Open App Market Act' with the same content on the 11th, and it is analyzed that the issue of big tech companies' abuse of the app market has formed a global consensus.
Regarding Kakao, Korea's leading mobile company, recently, uncomfortable views about the expansion of its octopus business are popping up everywhere.
Kakao, which has expanded its business to gift giving, payment, shopping, webtoon, insurance, and finance with KakaoTalk, the national messenger, has now penetrated into areas such as quick service, surrogate driving, flower delivery, beauty salons, indoor golf courses, and valet parking.
Kakao has grown with the goal of discovering the essence of problems and suggesting solutions in everyday life, where it was natural to be uncomfortable and complicated, but at the same time, it faced controversy over infringement of alley commercial rights.
As the backlash grew, there were cases where big tech companies raised a white flag.
Kakao Mobility promoted 'Smart Call', a function that allows you to catch a taxi faster by paying more when calling a taxi with the Kakao T app, and increased rates for shared bicycles, but based on its monopolistic platform status in the mobility market, one-sided services one after another The plan was withdrawn on the 13th in the face of public opinion that a rate hike would be carried out.
Naver, which suffered a lot from the controversy over the infringement of alleyways in the past, is skillfully responding to public opinion by considering shared growth with small and medium-sized business owners as gold and silver in expanding its e-commerce business.
After a conflict with the Korea Real Estate Association, Naver decided to indefinitely postpone the change to the real estate management agreement, which was scheduled to be implemented in October. It was planned to make it mandatory to notify Naver by entering the landlord's phone number and Naver ID when registering a real estate property, but it was eventually canceled because the real estate industry strongly objected that Naver was trying to enter the brokerage market directly.
With respect to Naver's online legal consulting expert service, the Korean Bar Association introduced the 'discipline for lawyers joining the legal platform' in May to stop it, and the conflict between the two has spread to a constitutional complaint.
It is predicted that the more big tech companies expand and grow, the more the controversy will be amplified.
Moreover, in the United States, China, and Europe, the consensus that the growth of IT companies is causing harm such as monopoly rather than new business development, innovation, and job expansion, which was initially expected from the growth of IT companies, is spreading, and regulations to alleviate their excessive market dominance are being introduced. Reinforcing movements are active. In Korea, an online platform fairness law has been proposed that regulates platforms not to 'gap-jil' against vendors.
Accordingly, it is a diagnosis that the government urgently needs elaborate regulations to protect innovation competition between platform companies while preventing monopoly harm.
Yang Yong-hyeon, a researcher at the Korea Development Institute (KDI), said in a report titled 'Introduction and Implications of the U.S. Platform Anti-Monopoly Act', "The recent anti-platform anti-monopoly bill proposed by the U.S. House of Representatives is a competition authority in response to the concentration of economic power in a small number of big tech companies. It is about the radical and active platform discipline of is," he urged.
“The Online Platform Act generally imposes an appropriate level of obligation, but we should consider ways to further alleviate the burden on companies through adjustment of the subject of regulation and the proper design of a fact-finding survey,” he said. The standards are set by the Presidential Decree among platforms with brokerage transactions of 100 billion won or more.