What specific app market practices are Google and Apple accused of in South Korea?

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Google and Apple Accused of Abusing Dominant App Market Position in South Korea

South Korea's telecommunications regulator has accused Google and Apple of abusing their dominant positions in the app market through practices such as forcing developers into specific payment methods and causing unfair delays in app reviews. These alleged actions are seen as potentially undermining the intent of a South Korean law designed to prevent app store operators from mandating the use of their own payment systems. The Korea Communications Commission (KCC) is considering imposing substantial fines on both companies, amounting to approximately US$50.5 million (68 billion won) combined.
Forcing Specific Payment Methods on Developers

The KCC has stated that both Google and Apple have compelled app developers to adopt specific payment methods. This practice is a key focus of the regulator's investigation, as it directly relates to the 2021 amendment of the Telecommunication Business Act. This law was specifically enacted to prohibit app store operators from forcing software developers to use their proprietary payment systems, aiming to foster a more competitive environment for digital transactions.
Unfair Delays in App Review Processes

Beyond payment system mandates, both technology giants are also accused of causing unfair delays in the app review process. This alleged practice could impact developers by hindering the timely launch or updates of their applications, thereby potentially affecting their market reach and revenue generation. The KCC's statement indicates that these delays are considered part of the broader pattern of market dominance abuse under scrutiny.
Discriminatory Fee Charging by Apple

In addition to the shared accusations, Apple faces a specific charge of discriminatory fee charging directed at domestic app developers. The KCC highlighted this practice as potentially undermining the law's objectives of promoting fair competition. This suggests that the regulator perceives Apple's fee structure as disproportionately impacting local developers compared to others, creating an uneven playing field within the South Korean app market.
Potential Fines and Corrective Actions

Following these findings, the KCC is notifying Google and Apple for corrective actions and will subsequently deliberate on the imposition of fines. The potential penalties include up to 47.5 billion won (approximately US$35 million) for Google and 20.5 billion won (approximately US$15 million) for Apple. These substantial proposed fines underscore the seriousness with which the South Korean regulator views the alleged violations of fair competition principles in the digital marketplace.

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What specific app market practices are Google and Apple accused of in South Korea?

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