Korean Authority Threatens Google and Apple With Hefty Fines Over Alleged Antitrust Practices

The Korea Communications Commission (KCC) has recently issued a warning to tech giants Google and Apple, accusing them of leveraging their dominant market positions in an unfair manner. The authority has threatened to impose fines of up to 68 billion won (approximately 47 million euros) on the companies for their alleged anti-competitive practices. 

According to a report by Reuters, the KCC claims that both Apple and Google have been pressuring app developers to use specific payment methods and have been slow in reviewing apps. The telecom watchdog has notified the companies of the potential fines and will be discussing the amount within the organization before making a final decision. 

The KCC has the authority to levy fines of up to 68 billion won, with Google facing a penalty of 47.5 billion won (around 33 million euros) and Apple facing a fine of 20.5 billion won (nearly 14 million euros). In response to the warning, Google stated to Reuters, "What the KCC shared today is the 'pre-announcement'. Once the final written decision is shared with us, we will carefully review it and determine how we proceed."

 Apple, on the other hand, expressed disagreement with the KCC's allegations and stated that it believes it is in compliance with the Telecommunications Business Act. The law, which prohibits app stores from mandating developers to use their payment systems, was updated in 2021 and came into effect on March 15, 2022. It is important to note that these fines could have significant financial implications for both Google and Apple. Google could be required to pay 47.5 billion won, while Apple may face a penalty of 20.5 billion won. The KCC's decision to potentially penalize these tech giants underscores the importance of fair competition and protecting the interests of app developers within the digital ecosystem.

 Overall, the KCC's warning to Google and Apple signals a growing scrutiny of big tech companies' practices and highlights the need for transparency and fair competition in the digital marketplace. It remains to be seen how Google and Apple will respond to the potential fines and whether they will take any actions to address the concerns raised by the Korea Communications Commission.