Government to organize ‘Government led TF team’ to block ‘Google’s unfair action’
Kang Eun Seong | esther@ | 2017-11-03 10:06:25
The government set up a joint response class and set out a plan to improve it in earnest in order to solve the problem of Google Korea, which is in the midst of controversy over `reverse discrimination` due to tax avoidance and free ride on the network. The National Assembly is expected to start full-fledged discussions on how to block unfair practices, including the launch of a study group to prepare legislation.
According to the government and the National Assembly on November 2, the Ministry of Science, Technology and Information is planning to set up a `Task Force for Google Response` along with related departments such as the Korea Communications Commission, the Ministry of Strategy and Finance and the Fair Trade Commission. First, the Internet Policy Bureau of the Ministry of Information and Communication and the Policy Bureau Director of the Korea Communications Commission is expected to focus on discussions on interconnection and network usage between Google and domestic telecommunications companies. Currently, Google has an "interconnection free settlement" contract with telecommunication carriers` domestic network for international line (submarine cable) operation. It does not exchange interconnection charges by treating international line usage fee and domestic communication network use at the same rate.
However, recently, the proportion of domestic network usage has skyrocketed due to the rapid increase of video traffic such as YouTube, and the controversy has been growing as Google has demanded to share domestic telecommunication companies` expenses for the expansion of international lines. Domestic mobile carriers are building their own cache servers and distributing Google traffic at their own expense, but this will mean that Google will pay for building the network.
Especially, domestic internet operators such as Naver are receiving a certain amount of network fee, so there is controversy about `reverse discrimination` with Google, which actually uses the network for free.
The government also plans to focus on the calculation of network fee payment standards and interconnection fees in this joint response class, and to provide solutions through overseas case studies.
The government decided to respond more aggressively to the controversy over tax avoidance by Google Korea. Currently, Google is registered as a `limited company` that does not have any obligation to disclose sales or other financial information in Korea, making it difficult to collect taxes on profits under the current law. According to data from the Korea Wireless Internet Industry Association, Google Play, which is responsible for Google`s platform business, estimated that sales in Korea last year exceeded 4 trillion won, but the exact sales amount is not even understood.
Meanwhile, Yu Young-min, the minister of information technology at the Ministry of Science and Technology, said, "I think it is necessary for the Ministry of Information and Communication, the FTC, the FTC and the Korea Communications Commission to jointly respond."
The National Assembly is actively promoting the controversy over Google.
Kim Kyung-jin, the deputy chairman of the Ministry of Information and Communication, said, "We discussed ways to avoid taxation of global companies such as Google and protect personal information of the public." He said, "We will also conduct research at the legislature`s office in order to establish a legal apparatus that can verify the sales so that we can do it."
In fact, Mr. Kim is considering the fact that most of the `Google Play payment` is pre-registered `credit card`, so he collects relevant information in connection with the Financial Supervisory Service and the credit card company. Based on this information and plans to study how to do it.
Mr. Kim stated, "I will exchange opinions with the government in order to prepare the basis law and improve the administrative system as the research is completed." If the government and the National Assembly respond together, we can find clues to solve the problem of discrimination against foreign companies. "
By Kang Eun Seong esther@
[ copyright ⓒ The Digitaltimes ]
According to the government and the National Assembly on November 2, the Ministry of Science, Technology and Information is planning to set up a `Task Force for Google Response` along with related departments such as the Korea Communications Commission, the Ministry of Strategy and Finance and the Fair Trade Commission. First, the Internet Policy Bureau of the Ministry of Information and Communication and the Policy Bureau Director of the Korea Communications Commission is expected to focus on discussions on interconnection and network usage between Google and domestic telecommunications companies. Currently, Google has an "interconnection free settlement" contract with telecommunication carriers` domestic network for international line (submarine cable) operation. It does not exchange interconnection charges by treating international line usage fee and domestic communication network use at the same rate.
However, recently, the proportion of domestic network usage has skyrocketed due to the rapid increase of video traffic such as YouTube, and the controversy has been growing as Google has demanded to share domestic telecommunication companies` expenses for the expansion of international lines. Domestic mobile carriers are building their own cache servers and distributing Google traffic at their own expense, but this will mean that Google will pay for building the network.
Especially, domestic internet operators such as Naver are receiving a certain amount of network fee, so there is controversy about `reverse discrimination` with Google, which actually uses the network for free.
The government also plans to focus on the calculation of network fee payment standards and interconnection fees in this joint response class, and to provide solutions through overseas case studies.
The government decided to respond more aggressively to the controversy over tax avoidance by Google Korea. Currently, Google is registered as a `limited company` that does not have any obligation to disclose sales or other financial information in Korea, making it difficult to collect taxes on profits under the current law. According to data from the Korea Wireless Internet Industry Association, Google Play, which is responsible for Google`s platform business, estimated that sales in Korea last year exceeded 4 trillion won, but the exact sales amount is not even understood.
Meanwhile, Yu Young-min, the minister of information technology at the Ministry of Science and Technology, said, "I think it is necessary for the Ministry of Information and Communication, the FTC, the FTC and the Korea Communications Commission to jointly respond."
The National Assembly is actively promoting the controversy over Google.
Kim Kyung-jin, the deputy chairman of the Ministry of Information and Communication, said, "We discussed ways to avoid taxation of global companies such as Google and protect personal information of the public." He said, "We will also conduct research at the legislature`s office in order to establish a legal apparatus that can verify the sales so that we can do it."
In fact, Mr. Kim is considering the fact that most of the `Google Play payment` is pre-registered `credit card`, so he collects relevant information in connection with the Financial Supervisory Service and the credit card company. Based on this information and plans to study how to do it.
Mr. Kim stated, "I will exchange opinions with the government in order to prepare the basis law and improve the administrative system as the research is completed." If the government and the National Assembly respond together, we can find clues to solve the problem of discrimination against foreign companies. "
By Kang Eun Seong esther@