From South Korea with love: $50.5 million in combined fines hang over Apple, Google

The KCC, short for the Korea Communications Commission, has given Apple and Google the “I wouldn’t if I was you” warning. The combined fines that the telecommunications regulator threatened to bless the US tech giants add up to $50.5 million. All of this over a topic that’s discussed more and more with each passing day – “dominant app market position”.

According to a Reuters report, the KCC said in a statement that Apple and Google forced app developers into specific payment methods and caused “unfair delay in app review”. Both tech behemoths are to correct their actions, the South Koreans’ statement says, or fines will be imposed.

"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," Google said in a statement to Reuters.

Apple also issued a statement, saying: "We disagree with the conclusions made by the KCC in their Examiner's Report, and believe the changes we have implemented to the App Store comply with the Telecommunications Business Act. As we have always done, we will continue to engage with the KCC to share our views."

South Korea has already passed an amendment to the Telecommunication Business Act in 2021. The amendment aims to ban app store operators from forcing software developers to use their own payment systems. The KCC said that Google and Apple's enforcement of certain payment methods, and Apple's "discriminatory charging of fees to domestic app developers" is likely to undermine the law's purpose of promoting fair competition.