Home ยป Google and Apple Receive Warning from South Korea, In-App Payment System May Be Subject to Maximum Adjustment of 19 Billion Baht

Google and Apple Receive Warning from South Korea, In-App Payment System May Be Subject to Maximum Adjustment of 19 Billion Baht

The Korean Communications Commission (KCC) has issued warnings to Google and Apple regarding limitations on developers’ ability to use payment systems outside of their platforms. The KCC specifies that both companies must comply with these requirements or they may face financial penalties.

Previously, South Korea passed a law allowing developers to choose alternative payment systems other than those provided by the platform. The KCC states that both Google and Apple hold significant market power in the app platform industry, squeezing developers to use their payment systems and employing delaying tactics for app approvals if not complied with. These actions violate South Korea’s telecommunications laws, which carry a maximum penalty of KRW 475 trillion for Google and KRW 205 trillion for Apple, totaling KRW 680 trillion or approximately KRW 19 trillion.

A representative from Google clarifies that the KCC’s announcement is a precautionary warning, as the company has already adjusted its payment system since 2021. On the other hand, Apple disagrees with KCC’s report, affirming that the company has already made necessary adjustments to the App Store to comply with South Korean law.

TLDR: The Korean Communications Commission has warned Google and Apple about restricting developers from using payment systems other than their own. Failure to comply may result in significant fines. Google claims to have already made the necessary adjustments, while Apple disagrees with the KCC’s report and states that they have complied with South Korean law.

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