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South Korea finds Google, Apple not in compliance with its app store regulations

South Korea plans penalties for Google and Apple, citing abuse of app market dominance through payment methods and unfair practices.

South Korea plans to impose corrective measures and penalties on Google and Apple for abusing its dominance in the apps market by forcing app developers to use specific payment methods in their apps and unfairly delaying app assessment, the Korea Communications Commission said in a press release dated October 6. South Korea in September 2021 became the first country to introduce regulations forcing Google and Apple to open their app stores to alternative payment systems, but developers soon complained that the two companies were finding ways around the regulations by still charging high commissions and engaging in other unfair practices. In response, KCC launched an investigation into Google and Apple in August 2022. The regulator now plans to impose a penalty of up to 68 billion won (~50 million USD) including 47.5 billion won (~35 million USD) for Google and 20.5 billion won (~15 million USD) for Apple, after giving the two companies an opportunity to respond. "The enforcement of specific payment methods by Google and Apple is a significant concern because it has the potential to undermine the primary goal of the amended act in September 2021, which is to promote fair competition in the app market," KCC explained. The regulator also took objection to "Apple’s discriminatory charging of fees to domestic app developers" and has proposed a draft corrective measure that prohibits this practice. "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…

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