South Korea’s telecoms regulator warned Friday that Alphabet Inc.’s (GOOGL.O) Google and Apple (AAPL.O) have misused their app market dominance and might be fined $50.5 million.
The Korea Communications Commission (KCC) alleged the two digital giants coerced app developers into certain payment methods and delayed app reviews unfairly. The statement stated that the KCC would consider sanctions and inform corporations of corrective measures.
“KCC provided the ‘pre-notice’ today, and we will carefully analyze and submit our answer. Once the final written judgement is given, we will carefully study and decide what to do “Google said to Reuters.
Apple added: “We disagree with the KCC’s Examiner’s Report and believe our App Store adjustments conform with the Telecommunications Business Act. We will continue to express our thoughts with the KCC as usual.”
South Korea amended the Telecommunication Business Act in 2021 to prohibit app store operators from compelling software developers to utilize their payment methods. The KCC stated Google and Apple’s enforcement of particular payment methods and “discriminatory charging of fees to domestic app developers” may violate the law’s fair competition goal.
The regulator may punish Google 47.5 billion won and Apple 20.5 billion won up to 68 billion won ($50.47 million) after hearing from the firms, KCC said.