South Korea Fines Google and Apple Over App Store Practices
South Korea fines Google and Apple for unfair app market practices, citing anti-competitive behavior.
2 min read
South Korea has fined Google and Apple a combined 63.7 billion won ($47.6 million) for unfair app market practices, accusing the tech giants of abusing their dominance by forcing local developers to use their own payment systems and delaying app reviews.
Regulator Investigates Tech Giants
The Korea Media and Communications Commission, the country’s media and telecommunications regulator, has spent years investigating the U.S. tech giants for allegedly violating a 2021 law that prohibits app store operators from forcing developers to use specific payment systems.
The commission fined Google 42.9 billion won ($32 million) and Apple 20.8 billion won ($15.5 million), ordering both companies to let South Korean developers use external payment links within their apps and to improve their app review procedures.
Companies Dispute the Decision
In a statement to The Associated Press, Apple said it “respectfully” disagrees with the decision, arguing that its current practices comply with South Korean law and that it is evaluating its legal options. Apple claimed its in-app payment system allows users to make secure transactions while protecting them from predatory tactics and fraud.
Google did not immediately respond to a request for comment.
Unfair Payment Systems and Review Delays
The commission said Google and Apple unfairly pushed app developers toward their own in-app payment systems while barring payments through external websites. Although the companies technically allowed third-party payment systems within apps, they charged developers a 26% commission and withheld some features available through their own systems, effectively forcing developers to use only their in-app payment systems.
The commission also found instances where the companies delayed app reviews without clearly explaining to developers the reasons for the delays or when reviews would resume. It accused Apple of charging South Korean developers higher commissions than developers elsewhere from 2015 to January 2023.
South Korea’s Scrutiny of Tech Companies
South Korea has for years closely scrutinized the business practices of foreign technology companies operating in its market. In 2021, it became the first country to enforce a law prohibiting app market operators such as Google and Apple from requiring users to use their own in-app payment systems.
Source: OANN
