Reasons for Proposal
As more and more people use smartphones, the occurrences of harm to consumers and complaints related to app markets such as Google Play Store and Apple App Store have increased rapidly. However, the government has not stepped up to impose restrictions as app market operators are global business entities, which are difficult to regulate. The Korea Communications Commission has put in place the App Market Mobile Content Payment Guidelines, but the guidelines are only limited to payment and not legally binding, which some argue is not enough to prevent unfair practices by app market operators.
In this regard, this Act aims to explicitly define the responsibilities and obligations of app market operators, which includes prohibiting app market operators from registering any mobile content containing illegal information and preventing mobile content developers from entering into any unfair contract by taking advantage of their position in a transaction, thereby reducing harm to app market users and mobile content developers (Articles 22-9 and 104).
Major Provisions
Article 22-9 (Obligations of App Market Operators) ① App market operators shall not engage in any of the following:
1. Register and sell any mobile content containing illegal information under Article 44-7 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.;
2. Take advantage of their position in a transaction to force the persons who develop, produce, and provide mobile content to app markets pursuant to paragraph (2) (“mobile content developers”) to enter into any unfair contract as prescribed by Presidential Decree; and
3. Undermine fair competition between mobile content developers or benefits for users in app markets pursuant to paragraph (2).
② App market operators shall take technical action for the transaction and payment of mobile content in any space which registers and sells mobile content and mediates transactions so that users can purchase the content (“app market”).
③ App market operators shall prevent any user harm related to mobile content payment and protect users’ rights and interests as prescribed by Presidential Decree.
④ The Korea Communications Commission shall investigate app market operators’ operations of app markets as prescribed by Presidential Decree and may order necessary actions including corrective actions for any violation of paragraphs (1) through (3) by app market operators if found during the investigation.
