South Korea's media watchdog concluded that Google and Apple violated laws by abusing their dominance in app marketplaces. The companies are accused of imposing high transaction fees on third-party payment options, effectively nullifying a 2021 law aimed at preventing such practices.
The ruling by South Korea's media watchdog highlights ongoing global efforts to regulate app store policies and curb the market power of major tech companies, potentially impacting their revenue streams and business models.
South Korea's media watchdog has concluded that U.S. tech giants Google and Apple violated laws by abusing their dominance in their respective app marketplaces. The Korea Media Communications Commission (KMCC) announced its findings Wednesday, stating that the companies' practices circumvented a 2021 revision to the telecommunications business act. This law was intended to prevent large app market operators from forcing app developers to exclusively use their in-app payment systems.
Following the law's revision, Google and Apple implemented a policy allowing customers to use third-party payment gateways. However, they imposed a transaction fee of approximately 26 percent on these non-in-app purchases, a move criticized for effectively nullifying the law's intent. The KMCC had previously warned in October 2023 that it would impose the highest possible fine on the two companies, but sanctions have yet to be determined and will be decided at a later date.