The Korea Communications Commission (KCC) declared on Friday that it is seeking to impose a combined fine of 68 billion won (US$50.42 million) on Alphabet Inc’s Google and Apple Inc. for their contravention of the nation’s in-app payment regulations.
In August 2022, the KCC launched an investigation into the enforcement of certain in-app payment procedures and other irregularities by Google Play and App Store against app developers.
Having completed the probe, the commission made the decision to levy a penalty of 47.5 billion won on Google and 20.5 billion won on Apple due to the determination that they had violated the revised Telecommunications Business Act by exploiting their monopoly power to compel local publishers to use their in-app billing system and unfairly delaying the review of apps.
Moreover, the KCC found that Apple’s policy of charging domestic app developers fees is an act of discrimination.
The commission urged the two companies to implement corrective measures, saying that their practices are a “grave issue” as they could significantly impede fair market competition.
The commission plans to finalize the fine after listening to the opinions of the companies and going through due deliberation procedures.
Last year, the National Assembly passed a law that forbids app store operators from compelling in-app payment systems on developers, making South Korea the first country in the world to introduce such restrictions on in-app billing policies of Apple and Google.