South Korea’s Regulator Warns Google and Apple of Possible Fines for App Market Abuse

South Korea’s telecommunications regulator, the Korea Communications Commission (KCC), has announced that it has found Google and Apple guilty of abusing their dominant positions in the app market. The KCC stated that the tech giants have forced app developers into specific payment methods and caused unfair delays in app reviews. As a result, the regulator has warned of potential fines amounting to $50.5 million.

In 2021, South Korea passed an amendment to the Telecommunication Business Act, prohibiting app store operators from compelling software developers to use their payment systems. The KCC argues that Google and Apple’s enforcement of certain payment methods, along with Apple’s discriminatory charging of fees to domestic app developers, undermines the law’s objective of promoting fair competition.

The KCC is now notifying Google and Apple for corrective action and will deliberate on the fines. If the regulator decides to impose penalties, they could reach up to 68 billion won ($50.47 million), with Google facing a potential fine of 47.5 billion won and Apple 20.5 billion won.

Both Google and Apple have yet to respond to requests for comment from Reuters.

This development highlights the increasing scrutiny faced by major tech companies regarding their app store practices. South Korea’s actions could potentially set a precedent for other countries looking to regulate app market dominance and ensure fair competition.