The Korea Communications Commission (KCC) announced on Friday that it intends to impose a total of 68 billion won (US$50.42 million) in fines against Alphabet Inc.’s Google and Apple Inc. for their violations of the country’s in-app payment laws.
The KCC launched an investigation in August 2022 into Google Play and App Store over their enforcement of certain in-app payment methods and other irregularities against app developers.
This image, provided by Yonhap News TV on Nov. 19, 2021, shows the logos of Google and Apple. (PHOTO NOT FOR SALE) (Yonhap)
The commission determined to impose a penalty of 47.5 billion won on Google and 20.5 billion won on Apple due to their abuse of monopoly power to force local publishers to use specific billing systems and unjustly delaying app review.
Apple was also found to be in breach of the law by charging domestic app developers fees. The KCC has called for the two companies to implement corrective measures, as their practices are a “grave issue” that could significantly impede fair market competition.
The fines are pending finalization after Google and Apple are given the opportunity to provide their opinions and the commission undertakes due deliberation procedures.
In 2021, South Korea became the first country in the world to pass a law that prohibits app store operators from forcing in-app payment systems on developers.
“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,” Google said in a statement to Yonhap News Agency.
“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,” it added.
Yoon Chul-ho, chairman of the Korean Publishers Association, speaks during a press conference on Oct. 25, 2022. It was held to explain the association's filing of a suit against Google over its in-app billing policy. (Yonhap)
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