Apple and Google fined in South Korea over app store violations
Regulator finds tech giants forced in-app payments, imposed unfair commissions, and delayed app reviews.
Quick Look
South Korea's communications regulator has penalized Apple and Google for violating the country's Telecommunications Business Act, issuing fines of $32 million and $15.6 million respectively over unfair app store business practices.
AI-generated summary
Why It Matters
Regulator conducted fact-finding investigations and on-site inspections on the companies since 2022.
Both Apple and Google have violated Korea's Telecommunications Business Act, the country's communications regulator has determined. The companies have received penalties from the regulator and have been ordered to change their business practices related to their app stores. Google was slapped with a KRW 42.9 billion ($32 million) fine, while Apple has to pay KRW 20.81 billion ($15.6 million) in penalties.
According to the Korea Media and Communications Commission (KMCC), it has conducted fact-finding investigations and on-site inspections on the companies since 2022. The agency found that the two of them violated the country's rules for the app market sector, including forcing people to use their in-app payment methods, imposing a commission of 26 percent for third-party payments and prohibiting external payments.
It also said that the company delayed app reviews without providing a clear reason for it and didn't responding to individual inquiries about the delays. Finally, the regulator found that Apple computed its commissions differently for South Korean and overseas developers. For Korean developers, it based its cut on the price of purchases including VAT, while it based its cut on pre-VAT prices for developers from outside the country.
Open Questions
- Will Apple and Google appeal the fines?
- How will the companies alter their business practices in South Korea?
