Apple and Google are facing millions in fines and that’s probably just the beginning

The South Korean Communications Commission is planning multi-million fines for Apple and Alphabet subsidiary Google for unfair trade practices. The regulator accused both companies on Friday of abusing their dominant position in the app market and forcing their payment systems on app developers.

They are also alleged to have wrongly delayed the approval of applications on their central distribution platforms. The fines could therefore reach 68 billion won (about 46 million francs) – 47.5 billion won for Google and 20.5 million won for Apple.

It was said that both companies had violated legal provisions governing telecommunications transactions. Additionally, South Korean developers would have to pay additional fees to Apple if they wanted to distribute their apps through the company’s app store. The sanctions would become final once the companies commented on them.

Apple and Google deny the allegations

Both app store operators denied the allegations. Google said by email that it has been working with the Commission since the investigation began in August 2022 “to explain how we complied with the new law.”

South Korea’s Yonhap news agency quoted Apple as saying the company would also inform the commission of its position on the allegations. The company assumes “that the changes we have made to the App Store comply with the Telecommunications Transactions Act.”

Punishment measures in South Korea have a signaling effect

The law, which is intended to limit the market power of large technology companies, was passed two years ago. South Korea was the first country to introduce such legal restrictions on companies’ in-app sales policies. Regulators in the US, Europe and other countries are also scrutinizing the business practices of Apple and Google. The two companies face further penalties in numerous countries.

(oli/sda/awp/dpa)