The telecommunications regulator of South Korea warned Alphabet Inc. and Apple that the regulation might fine the companies up to $50.5 million for abusing their dominant app market positions.
South Korea's Regulators Find Google, Apple Unfair Processes
In a statement released by the Korea Communications Commission (KCC), the two companies are reportedly forcing app developers to use a specific payment method, causing an unfair delay in app review. After reviewing, the regulators could impose fines of around $35 million for Google and $15 million for Apple.
In 2021, South Korea amended its Telecommunications Business Act. The enforced policy is meant to ban app store operators from forcing software developers to use their payment systems. The KCC remained firm that both companies have enforced certain payment methods. Moreover, Apple has a "discriminatory charging of fees to domestic app developers."
Meanwhile, Google issued a statement to Reuters stating that the company will carefully review and evaluate its next course of action. On the other hand, Apple voiced its disagreement with KCC's report and cleared that they have been compliant with the Telecommunications Business Act. Both companies have promised to continuously discuss with the KCC.
Country Regulators Come at Tech Giants
This is not the first time that a giant tech company has been warned and fined by state regulators. In 2022, Google and Meta were fined by the South Korean government with $71.8 million for violating privacy laws. In addition, Meta was also fined by Norway with $98,500 for privacy data breaches.
On the other hand, several companies have been hit with antitrust lawsuits. Both the Federal Trade Commission and the European Union have been watching big tech companies like Amazon, Microsoft, Meta, Apple, and Alphabet.
