S.Korea considers $50.5 millionn fine against Google, Apple over app market practices

SEOUL – South Korea’s telecommunications regulator said on Friday that Alphabet Inc’s Google and Apple have abused their dominant app market position and warned of possible fines totaling up to $50.5 million.

The Korea Communications Commission (KCC) said in a statement that the two tech giants forced app developers into specific payment methods and caused unfair delay in app review.

The KCC is notifying the companies for corrective action, and will deliberate on the fines, the statement said.

“Since the start of the fact-finding investigation in August 2022, we have worked closely with KCC to explain how we are complying with the new law whilst ensuring that through our alternative billing, we continue to provide a safe and high-quality experience for all. What KCC has shared today is the ‘pre-notice’ and we will carefully review and submit our response. Once the final written decision is shared with us we will carefully review to evaluate the next course of action,” Google said in a statement to Reuters.

Apple did not immediately respond to Reuters’ requests for comment.

In 2021, South Korea passed an amendment to the Telecommunication Business Act banning app store operators from forcing software developers to use their payments systems.

The KCC said that Google and Apple‘s enforcement of certain payment methods, and Apple‘s “discriminatory charging of fees to domestic app developers” is likely to undermine the law’s purpose of promoting fair competition.

After hearing from the companies, the regulator could decide to impose fines of up to 68 billion won ($50.47 million), including 47.5 billion won for Google and 20.5 billion won for Apple, KCC said. – Reuters