South Korea’s telecoms regulator stated Google and Apple have actually abused their dominant app market position and cautioned of possible fines amounting to US$ 50.5 million ($ 79 million).
The Korea Communications Commission (KCC) stated in a declaration that the 2 tech giants required app designers into particular payment techniques and triggered unjust hold-up in app evaluation.
The KCC is informing the business for restorative action, and will ponder on the fines, the declaration stated.
” What KCC has actually shared today is the ‘pre-notice’ and we will thoroughly examine and send our action. When the last composed choice is shown us we will thoroughly examine to assess the next strategy,” Google stated in a declaration to Reuters.
Apple likewise provided a declaration, stating: “We disagree with the conclusions made by the KCC in their Inspector’s Report, and think the modifications we have actually carried out to the App Shop adhere to the Telecom Company Act. As we have actually constantly done, we will continue to engage with the KCC to share our views.”
In 2021, South Korea passed a modification to the Telecommunication Company Act prohibiting app shop operators from requiring software application designers to utilize their payments systems.
The KCC stated that Google and Apple’s enforcement of particular payment techniques, and Apple’s “prejudiced charging of charges to domestic app designers” is most likely to weaken the law’s function of promoting reasonable competitors.
After speaking with the business, the regulator might choose to enforce fines of approximately 68 billion won (US$ 50.47 million), consisting of 47.5 billion won for Google and 20.5 billion won for Apple, KCC stated.