South Korea to Impose $50.5 Million Fines on Google and Apple for Violating In-App Payment Law

Korea Plans to Fine Google and Apple for Violating In-App Payment Law

South Korea’s telecommunication regulator, the Korea Communications Commission (KCC), said Friday that it plans to levy fines on Google and Apple, which could total up to $50.5 million, for violating the country’s in-app payment law. 

Abuse of Market Dominance

According to the KCC statement, the two Big Tech giants abused market dominance to force local app developers to use their in-app payment methods rather than competitors’ payment systems and unfairly delayed app reviews to enforce the specific billing system. 

Corrective Measures for Fair Competition

The commission informed Google and Apple of the implementation of corrective measures to promote fair competition in the app store marketplace. The watchdog also mentioned in the statement that Apple discriminatorily charged commissions to domestic app developers in South Korea.

Finalizing the Fines

The KCC will finalize the fines for Google and Apple, up to 47.6 billion won ($35.4 million) and 20.5 billion won, respectively, after collecting opinions from Google and Apple. 

Investigation and Violations

The Korean watchdog launched its investigation into the case of three app stores — Google, Apple, and One Store, a local app store — in August 2022 over potential violations of the country’s in-app payment rule that South Korea passed in 2021.

South Korea’s In-App Payment Rule

In 2021, South Korea enacted a new telecommunication law that allows app developers to use third-party payment options for in-app purchases and bans app store operators from forcing them to use their own systems. Apple and Google agreed to abide by these rules. However, Apple asked developers targeting the South Korean App Store to submit a separate binary for using third-party purchasing systems in 2022. 

Previous Fine on Google

Earlier this year, South Korea’s Fair Trade Commission (KFTC) fined Alphabet’s Google 42.1 billion won (nearly $32 million) for blocking developers from releasing mobile video games on a Korean competitor platform called One Store.

Seeking Comments from Google and Apple

AsumeTech has reached out to Google and Apple for a comment, and we’ll update the story if we hear back.

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