Korea Communications Commission threatens Apple, Google with fines up to $50.5 million

South Korea’s telecommunications regulator says that Apple and Alphabet’s Google have abused their dominant app market position and warned of possible fines totaling up to US$50.5 million, reports Reuters.

The Korea Communications Commission (KCC) said in a statement that the two tech giants forced app developers into specific payment methods and caused unfair delay in app review., the article says. The KCC is notifying the companies for corrective action, and will deliberate on the fines.

This despite the fact that, in June, Apple’s developer update on apps distributed in South Korea notes that developers can now use alternative payment methods in their apps.

From the update: The Telecommunications Business Act in South Korea was recently amended to mandate that apps distributed by app market operators in South Korea be allowed to offer an alternative payment processing option within their apps. To comply with this law, developers can use the StoreKit External Purchase Entitlement. This entitlement allows apps distributed on the App Store solely in South Korea the ability to provide an alternative in-app payment processing option. Developers who want to continue using Apple’s in-app purchase system may do so and no further action is needed.

If you’re considering using this entitlement, it’s important to understand that some App Store features, such as Ask to Buy and Family Sharing, will not be available to your users, in part because we cannot validate payments that take place outside of the App Store’s private and secure payment system. Apple will not be able to assist users with refunds, purchase history, subscription management, and other issues encountered when purchasing digital goods and services through an alternative purchasing method. You will be responsible for addressing such issues.

In March South Korea’s government approved a bill regarding alternative app store payment methods by Apple and Google. The rules specify that the law bars “the act of forcing a specific payment method to a provider of mobile content” by unfairly utilizing the app market operator’s status.In August 2021, South Korea’s National Assembly passed a law saying the tech giants have to open their app stores to alternative payments. The law amends South Korea’s Telecommunications Business Act to prevent large app-market operators from requiring the use of their in-app purchasing systems. It also bans operators from unreasonably delaying the approval of apps or deleting them from the marketplace.