South Korea’s telecommunications regulator, the Korea Communications Commission (KCC), has warned Google and Apple of potential fines totaling up to $50.5 million for allegedly misusing their dominant positions in the app market. The KCC claims that both tech giants have compelled app developers to use specific payment methods and have caused unjust delays in the app review process.
This latest warning follows a recent fine imposed on the South Korean units of Google and Apple for violating location data collection laws. Specifically, Google’s Korean subsidiary was fined 3 million won (approximately $2,180) for failing to disclose its location data policies properly, as reported by the KCC.
The KCC has informed both Google and Apple about the potential fines and will deliberate on the necessary corrective actions. According to the regulatory authority, Google could face a fine of approximately 47.5 billion won, while Apple may incur a penalty of about 20.5 billion won, totaling nearly $50.5 million.Â
The commission emphasized that the enforcement of specific payment methods by both companies undermines the purpose of the recently amended Telecommunications Business Act, which aims to support fair competition among app developers.
The 2021 amendment to the Telecommunications Business Act prohibits app store operators from compelling software developers to utilize their payment systems. The KCC’s current actions stem from concerns that Google’s and Apple’s practices may violate this law, thereby restricting fair competition within the app market. The KCC has requested both companies to take immediate corrective measures to rectify their alleged illegal business practices.
In addition to these regulatory challenges in South Korea, Google faces scrutiny in the United States. The US Justice Department has filed an antitrust case against Google, accusing the company of stifling competition by paying major firms, including Apple and Verizon, to make its search engine the default option on their devices. Regulators allege that Google spends around $10 million to secure this advantageous position on smartphones.
KCC Chairman Kim Hong-il talked about balancing user convenience with protecting individual privacy and social security when utilizing location information. Initially introduced in August 2021 and approved by the National Assembly in 2022, the regulatory framework aims to ensure that location data is used responsibly while promoting innovation within the industry.
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