수수료 전쟁 (4)
Commission War (4)
As discussed in advance, the Block Valley founders stepped out, leaving only CEO Tom Scott to join us.
We exchanged greetings and took our seats.
I spoke to the two lawyers.
"You're obviously aware of the details of the case, and since you've had plenty of time to review the materials before coming, I assume there's no need for me to explain further?"
The two nodded.
"That's correct."
"Let's start by focusing on Nfl as the defendant. I'd like to hear your opinions on this matter. Just to be clear, I'm not looking for pleasant words—I want cold, objective assessments."
Representative Archer spoke first.
"This lawsuit is essentially a David and Goliath battle."
Following 'eggs against rocks,' now it's 'David and Goliath'?
I expected as much, but hearing it still isn't pleasant.
If you instill some spirit into David, couldn't he beat Goliath?
...Come to think of it, David beat Goliath without any of that.
I set aside the idle thoughts and asked the opposing counsel.
"So it's that difficult a fight?"
"Yes."
"Why?"
"Because the liability lies with Legend Games and Block Games. Supporting web-based payments instead of in-app payments, or price-differentiating between in-app and external payments, is not a violation. Other apps employ similar methods."
Take the music streaming service Mango Music, for example—it costs 10,000 won if you pay through the app, but 7,000 won if you pay through the website.
The price difference is due to app store commissions.
Most apps allow subscriptions or cash purchases made on the web to be used within the app as well.
Many apps, including Netflix and Twitch, do this, and Nfl and Guble have never specifically penalized them for it.
But...
"Providing external payment options within the app, or actively steering users toward them, is a clear violation of the terms of service. Therefore, Nfl and Guble's actions in removing the apps are justified."
"So even if the terms are unfair, a contract is still a contract."
"Yes. When registering a game on an app store, developers go through an approval process agreeing to the rules and terms. That constitutes consent to the contract."
He was right.
If Nfl had suddenly raised its commission, it would be different, but the commission rate has remained the same. So Legend Games and Block Games are essentially unilaterally breaching the contract.
"Then what arguments can we make on our side?"
This time, Attorney Harrison spoke.
"We can claim tyranny through monopolization. We'd argue that the 30% commission wasn't determined through market competition, but through collusion between the two oligopolistic companies."
CEO Tom Scott nodded.
"It's not just an argument—it's fact. They're infringing not only on developers' interests but also on consumers' interests through their monopoly."
"Then we can also raise the consumer interest issue. But even so, it's hard to guarantee a win. The biggest problem is that our opponent is Nfl."
As everyone knows, Nfl is the world's largest corporation.
Nfl's market cap exceeds South Korea's GDP and KOSPI market cap combined, and its revenue is comparable to South Korea's national budget.
At this point, calling it a mega-empire is no exaggeration.
We're now trying to fight a company like this.
Even with the talk of near-zero chance of winning, CEO Tom Scott didn't seem fazed. He must have conducted thorough legal reviews before initiating this as well.
"What I'm hoping for isn't a victory. Whatever the trial outcome, I won't hold Archer & Harrison liable."
At my words, the two looked puzzled.
"If not victory, then what are you hoping for?"
I glanced to the side.
Then CEO Tom Scott spoke.
"We want this lawsuit to generate as much buzz as possible and reach as many people as possible. Nfl is the world's No. 1 mega-corporation, the ruler of the market. The emperor and landlord of the digital world. Yet they still package themselves as an icon of innovation with a young sensibility. In reality, they monopolize the market and fatten their own pockets by extorting massive commissions from developers."
"So the goal is media play?"
I nodded.
"Yes. We're not the only ones dissatisfied with the commission rates. Many are voiceless, but everyone holds resentment toward Nfl and Guble's monopoly and agrees that app store commissions are excessive. No one has spoken up for fear of retaliation, but if we take the lead and bear the brunt, many developers will raise their voices. Once the situation escalates, the app store monopoly will undoubtedly become a problem."
In the IT industry, where there are no physical barriers and production and distribution are digital, monopolies form very easily due to its nature.
Nfl, Guble, NS, AMZ, Facenote—all are monopolistic companies.
If they weren't monopolies to begin with, their market caps wouldn't have reached such heights.
"Monopolies are a harmful force that distorts the proper functioning of markets. The reason governments haven't touched this issue is that they've judged these monopolies to benefit consumers."
"But Nfl's 30% commission harms consumer interests."
"Yes. That's evident from the dual-pricing structure between web and app. Consumers are essentially being deprived of the opportunity to purchase goods at lower prices. Consumers should be able to choose the option that benefits them between in-app payments and external payments."
Representative Archer spoke cautiously.
"Ultimately, the core of the lawsuit will be whether antitrust laws were violated, and the courts have been very passive regarding this."
"I suppose so. Since those companies are American."
The U.S. can turn a blind eye as long as its domestic companies reap enormous profits through monopolies.
"But other countries might think differently, don't you think? No matter which country the payment is made in, Nfl and Guble take the commission. What's more, they've both established entities in tax havens and don't even pay taxes to those countries."
At my words, Representative Archer and Attorney Harrison couldn't hide their surprise.
"Are you thinking of filing lawsuits not just in U.S. courts, but in courts around the world?"
"Well, we don't necessarily have to do it ourselves. Once we stir things up enough, each country will naturally file its own suits."
Even in the previous round, this lawsuit was major news.
That's why I'm relatively familiar with how the litigation process went and what arguments were exchanged.
And what the outcome was.
I looked at Attorney Harrison and said.
"We'd like Fiona Harrison to take the lead on this lawsuit."
Representative Archer said, flustered.
"Attorney Harrison is still inexperienced."
"That's fine. Sometimes inexperience is an advantage. What matters is the framing."
She wasn't here because she's the managing partner's daughter.
She's here because David personally selected her from among the dozens of lawyers at the firm and requested her.
The reason is probably because she's a young woman of color. Plus, she's beautiful.
David also knows well how important it is to frame this lawsuit correctly.
I laid out the strategy.
"Nfl will try to frame this as a company-to-company dispute. We need to frame it as a mega-corporation's abuse of power. They'll be the old white male boss kicking out tenant farmers protesting high taxes. And we'll be the freedom fighters standing up against them."
* * *
[Legend Games files complaint with California Northern District Court!]
[Lawsuit battle over app store commissions!]
[Nfl remains silent, no official statement]
[CEO Tom Scott: 'A fight for the freedom of all developers. We will never stop.']
Legend Games simultaneously filed the complaint and released an ad parodying Nfl's past advertisements.
Nightlight's characters charged toward the Nfl logo that seduces the public, firing their guns, and then the text appeared.
'Legend Games resisted the N-Store monopoly.
In retaliation, Nfl blocked Nightlight.
Join this fight against Big Brother.'
Thus began the legal battle between the platform giant and the game company.
-Wow! They're really filing a lawsuit.
-The revenue hit must be insane.
-I heard Nightlight made $500 million in revenue on NOS alone. Including Andromeda, that's probably around $1 billion?
-Oh! So they paid about $300 million in commissions?
-That's nothing compared to Brotherhood M. Those guys make over 2 trillion won annually. And it's not even cross-platform—it's all mobile revenue. They probably paid 600 billion in commissions.
-There was a time like that...
-Now it's a dog's death! Became a game even boomers won't play lol
-But honestly, if you don't like paying the 30%, just don't do business. What's with the lawsuit? Can they even win?
-Did Continue Capital tell them to sue?
-Who do you think will win?
-If Legend Games wins, will commissions actually go down?
-No way.
-No. Don't lower it. We don't want to lower it. Go back quickly.
* * *
Yuseong Group mobilized its entire corporate capabilities to simultaneously build data centers in Korea, the United States, Europe, Japan, Australia, and more, while acquiring related companies.
They also significantly expanded their workforce.
If the business doesn't produce proper results, the entire group will suffer. The media even reported that Chairman Yoo Jae-ho had gone all-in.
Chairman Yoo Jae-ho personally traveled around the world, meeting business leaders and politicians to promise investment and employment.
Then, on his way back from the business trip, he came across this news.
'It hasn't been long since we fought Facenote, and now they're suing Nfl and Guble.'
Yoo Jae-ho called Han Mi-ru.
His counterpart answered the phone cheerfully.
[Hello, Chairman.]
"I came back from a business trip and you've already stirred up another interesting matter."
[I was actually about to call you, so this is perfect.]
"What do you have to say?"
He had only called to check in, but hearing that made him somewhat tense.
[Yes. How about taking this opportunity to expand Cosmic Store a bit?]
"What do you mean?"
[I'm suggesting you put Nightlight and Block Valley on Cosmic Store.]
The company that takes the most profit in the smartphone market is Nfl.
The N-Phone is the single best-selling model. Other than that, Chinese companies like Jaomi, Obo, and Bipo are also aggressively increasing their market share.
But still, the company that sells the most smartphones worldwide is Yuseong Electronics. And the smartphones Yuseong Electronics sells come with Cosmic Store pre-installed alongside Play Market.
While Cosmic Store has been pre-loaded on every smartphone and tablet sold so far, its market share in the app store space is still minimal, and it has primarily served to distribute apps specifically optimized for Cosmic Phones.
Most app store revenue comes from games, but game companies, mindful of Guble's watchful eye, often release their games only on Play Market for Andromeda.
"Wouldn't that make Yuseong Electronics a target of Guble's displeasure as well?"
[Ah! You don't need to worry about that at all.]
"Why not?"
[From the moment you partnered with Snow Crash and started the data center business, you were already on their radar. Even if you antagonize them a bit more, it probably won't change much, right?]
At that, Yoo Jae-ho burst into laughter.
"Hahaha!"
Guble is the third-largest company in the cloud market.
Thus, Yuseong Electronics was already a formidable competitor to Guble.
[If you say you'll join us, we'll push hard on our side. Not just Nightlight and Block Valley, but other games as well.]
Currently, Yuseong Electronics' revenue is driven by two pillars: semiconductors and smartphones.
Although they're No. 1 in global smartphone market share, their software is effectively dependent on Guble.
Expanding Cosmic Store would essentially be an act of defiance against Guble. In the past, it would have been unthinkable.
But now, the situation is different.
Yoo Jae-ho stopped laughing and said.
"I'll have to instruct them to prepare some advertisements."