South Korea’s telecommunications regulators have threatened Google and Apple with fines totaling $50.5 million for abusing their “dominant position” in the app market.
South Korea’s Telecommunications Business Law was amended in 2021 to prohibit app store operators from forcing software developers to use payment systems. However, Google and Apple have been pressuring app developers to use their own payment systems in violation of this decision.
South Korea’s Decision
South Korea’s Information and Communications Technology Authority (KCC) found that Google and Apple’s forcing app developers to use payment systems prevented fair competition and harmed consumers. The KCC therefore decided to fine Google and Apple a total of 50.5 million dollars.
South Korea’s decision is seen as an important step towards reducing Google and Apple’s dominant position in the app markets. This decision will give app developers more choice and provide consumers with lower prices and better services.
Google and Apple announced that they do not accept the KCC’s decision. Google said in a statement that it allows app developers to use its own payment systems, but that there are some requirements for these systems to be made available. Apple, on the other hand, argued that its payment system is better in terms of security and privacy.
The KCC’s decision is expected to reduce Google and Apple’s dominance in the app markets. It may encourage regulators in other countries to take similar decisions.
