The Korea Communications Commission (KCC) announced on Friday that they are considering imposing a combined fine of up to 68 billion won (US$50.42 million) against Alphabet Inc’s Google and Apple Inc. for violations of the country’s in-app payment laws.
The investigation, which began in August 2022, focused on the enforcement of certain in-app payment methods and other irregularities against app developers. After concluding the probe, the commission determined that Google and Apple had abused their monopoly power by forcing local publishers to use specific billing systems and postponing due app review. Additionally, Apple was found to have imposed fees for domestic app developers, a discriminatory act.
The KCC has requested the companies to implement corrective measures, as their practices could hinder fair market competition. The commission will make a final decision after taking into consideration the opinions of the companies and going through formal deliberation procedures.
In 2021, South Korea passed a law that prohibits app store operators from compelling in-app payment systems on developers, making it the first country in the world to introduce such regulations. Google and Apple have both responded to the KCC’s claims, with the former stating that they have been in compliance with the new law and the latter refuting the commission’s conclusions and stressing their efforts to build a sound local app ecosystem.