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A Study on Regulation Policies for the Workable Competition in the Mobile App-Market

  • DONG-A LAW REVIEW
  • 2014, (65), pp.499-527
  • Publisher : The Institute for Legal Studies Dong-A University
  • Research Area : Social Science > Law

Song, Tae-Won 1

1고려대학교

Accredited

ABSTRACT

As the method of information distribution has changed from personal computers to mobile devices, mobile apps are becoming a new platform for digital content distribution. The app store market where mobile apps are distributed is being dominated by two rivals—Google and Apple. In an environment where large companies like Google play a role of gatekeeper of the mobile content distribution market, the related markets also are restrained from competition. This means that apps of competitors have limited opportunities to enter the app market. The concern is that the lack of competition in the app market may lead to the lack of cost competition and service competition among app developers in the content distribution market and the submarket—the app market where users purchase and download apps. Therefore, it should be examined whether the current market environment is the result of normal competition or that of unfair assistance from large corporations. Currently, app distributors such as Google do not give apps of rival app stores access to their own markets. Given that allowing apps to enter any app market regardless of their origin can give the app developers an easy access to the content distribution market, it should be examined whether the current market environment is restricting the access of app developers to essential facilities. Even if app stores are not regarded as essential facilities, restriction imposed by the market-dominating app stores on apps can be seen as interference with business activities and unfair transaction rejection. Moreover, any act that makes app users inconvenient to install apps purchased from a third-party app market hampers the access of apps from different app markets to the app store. Unless there are any inevitable technical difficulties in installing the apps, it is highly likely that such a restriction is regarded as unfair interference with business activities. And it is debatable whether forcing app suppliers to use only a particular payment module designated by the app store is a tie-in sale or not. The answer to the question depends on whether there is justification for doing so. On the issue of the involvement of authorities responsible for ensuring fair competition in the mobile content distribution market, it is desirable to promote voluntary participation from app stores in opening doors to different app markets through administrative guidance or consent decision rather than taking top-down measures such as issuing correct orders to app markets and imposing a fine on them, considering the innovative nature of the mobile app industry.

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