South Korea’s Tech Watchdog Gears up to Fine Google and Apple for In-app Payment Violations

Liam Alexander 08 Oct 2023

Two of the most influential players in the tech industry, Google and Apple, maybe in hot waters in South Korea. As per recent developments, the Korea Communications Commission (KCC), South Korea's telecommunication regulator, has set forth plans to impose fines on these Big Tech giants for allegedly overstepping the country's in-app payment law - a move that could amount to a hefty $50.5 million fine in total.

The charge rests on the assertion that these tech behemoths used their imposing market presence to impose their in-app payment methods on local developers while unjustly delaying app reviews to secure the specific billing system. This, according to the commission, is a gross misuse of their dominant market position and a violation of South Korea's freshly minted in-app payment legislation.

In response to this, the KCC notified Google and Apple of a set of corrective measures aimed at fostering healthy competition in the app store marketplace. Apple, in particular, came under fire for supposedly charging domestic app developers discriminatory commissions.

Should the fines go ahead, Google could face a penalty of up to 47.6 billion won ($35.4 million in today's conversion), and Apple could be looking at a fine of 20.5 billion won. Nonetheless, before these fines can be finalized, the commission will be taking into account appeals from both tech giants.

This is not the first time South Korea has kept rigorous tabs on its digital market. In fact, a tangible effort to ensure fair competition has been evident in recent years. For instance, just this year, the nation's Fair Trade Commission fined Alphabet’s Google nearly $32 million for restricting developers from launching mobile video games on a Korean competitor platform. This latest event serves to drive home the message that adherence to local laws and the promotion of fair, competitive practices are of the utmost importance in South Korea's thriving digital landscape.