South Korea’s telecommunications regulator, the Korea Communications Commission (KCC), has issued a warning to Google and Apple, alleging that the tech giants have exploited their dominant positions in the app market. The KCC has also raised the possibility of imposing fines on the companies, with the total penalty potentially amounting to $50.5 million.
According to the KCC, both Google and Apple have engaged in practices that are detrimental to fair competition. Specifically, they have been accused of coercing app developers into using specific payment methods and causing undue delays in the review of apps.
In response to the KCC’s warning, Google stated, “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.”
Apple, too, disagreed with the KCC’s conclusions, asserting that they believe the changes made to the App Store comply with the Telecommunications Business Act. Apple stated, “As we have always done, we will continue to engage with the KCC to share our views.”
This regulatory action comes after South Korea passed an amendment to the Telecommunication Business Act in 2021, which prohibited app store operators from compelling software developers to use their payment systems. The KCC contends that Google and Apple’s practices, including enforcing specific payment methods and Apple’s alleged discriminatory fee charges to domestic app developers, undermine the law’s intended purpose of fostering fair competition.
The KCC will now give both companies an opportunity to respond before making a final decision. If the regulator proceeds with fines, the penalties could amount to 68 billion won (approximately $50.47 million), with Google facing potential fines of 47.5 billion won and Apple 20.5 billion won.
