South Korea’s telecom regulator plans to fine Alphabet’s Google and Apple a total of $51 million for allegedly abusing their market dominance and breaching the country’s mobile-payment regulations.
The Korea Communications Commission announced on Friday that it intends to impose fines on Google and Apple for their alleged violations of local fair-trade rules and the abuse of their market positions. The U.S. tech giants have been accused of pressuring app developers to use their in-app payment methods instead of competing options.
The commission also found that both Google and Apple had engaged in unfair practices by delaying app reviews to enforce their preferred methods of payment.
In response to the allegations, both companies stated that they are complying with South Korean law.
Google emphasized in a statement that it has been working closely with the KCC since the probe began in August 2022. The company aims to demonstrate its compliance with the new law and ensure the provision of “safe and high-quality” services through its alternative billing system.
Apple expressed disagreement with the conclusions drawn by the KCC and claimed that the changes made to its App Store align with the legal requirements. The company intends to continue engaging with the KCC to present its perspective.
The fines proposed by the commission amount to KRW47.6 billion ($35.4 million) for Google and KRW20.5 billion for Apple.
South Korea implemented new telecom regulations in 2021 to prevent app-store platform operators from abusing their dominant positions in the market.
