S. Korea Slaps Google, Apple With USD45M Fine Over App Payment Rules
The Korea Media and Communications Commission (KMCC) approved the fines after finding that both companies violated the Telecommunications Business Act. It will also issue corrective orders, but it will not file criminal complaints against either company.
The commission concluded that Google and Apple abused their dominant market positions by forcing developers onto specific payment methods and attaching unfavorable terms to third-party payment options.
The ruling arrives roughly three years after the regulator first notified the two companies of the suspected violations in October 2023, according to a South Korean news agency.
Under the orders, both companies must let developers offer alternative payment methods, including external payment links inside apps, and must set reasonable fees for third-party payment systems. Google must revise its third-party payment guidelines, while Apple must drop its requirement that developers submit separate apps to offer alternative payment options.
“A fair and sustainable app market ecosystem can be achieved through a cooperative and mutually beneficial relationship between app market operators and developers,” KMCC Chairman Kim Jong-cheol said.
Each company has one month from receipt of the corrective orders to submit a compliance plan and three months to put the changes into effect.
Google voiced regret over the decision, arguing the commission overlooked recent policy changes meant to widen payment options for developers and lower commission fees.
Apple also rejected the ruling, noting that more than 90% of revenue generated through its App Store ecosystem was returned to developers last year.
“Apple believes that the changes it has implemented to date comply with the Telecommunications Business Act,” the company said. “We are reviewing our next steps based on Korean law.”
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
