South Korea fines Google, Apple $48 million over app payment rules
South Korea’s media regulator has fined Google and Apple a combined 63.7 billion won ($48.35 million) for restricting app developers to their respective in-app payment systems, ordering both technology giants to take corrective measures.
The Media and Communications Commission announced on Wednesday that Google had been fined 42.9 billion won ($32.35 million), while Apple was ordered to pay 20.8 billion won ($16 million).
The regulator said the companies had limited users and app developers to specific payment systems, raising concerns about competition and fairness in South Korea’s mobile app market.
The decision marks another regulatory challenge for the US technology companies, which have faced growing scrutiny worldwide over their control of app distribution platforms and payment systems.
Apple said it disagreed with the decision and was reviewing its options in accordance with South Korean law.
The company said it had worked with third-party developers through its App Store to support innovation.
Google had not immediately commented on the decision.
South Korea has been among the countries seeking to curb the market power of major technology platforms and expand competition in the digital economy.
Apple and Google operate the two dominant mobile app ecosystems through their respective App Store and Google Play platforms. Their payment policies have long been criticised by developers who argue that mandatory in-app billing systems and associated fees increase costs and restrict their ability to offer alternative payment options.
Regulators in several jurisdictions have introduced or considered measures requiring app store operators to allow greater flexibility in payment methods and provide developers with more choices.
The South Korean regulator's decision adds to mounting international pressure on major technology companies to change business practices that authorities believe could limit competition.
The companies' next steps, including any potential legal challenges or changes to their payment policies, could determine how the decision affects developers and consumers in South Korea. (ILKHA)
LEGAL WARNING: All rights of the published news, photos and videos are reserved by İlke Haber Ajansı Basın Yayın San. Trade A.Ş. Under no circumstances can all or part of the news, photos and videos be used without a written contract or subscription.
Microsoft has introduced a new voluntary exit program covering approximately 60,000 employees across the United States, Canada, the United Kingdom and India, expanding its workforce-reduction options following thousands of job cuts and a voluntary retirement initiative earlier this year.
China launched a Long March 8A carrier rocket from the southern island province of Hainan on Sunday, successfully placing a new batch of low-orbit internet satellites into their designated orbit.
A federal judge in New Mexico has ordered Meta, the parent company of Facebook and Instagram, to pay a $25 billion civil penalty for mishandling users’ data and repeatedly making misleading statements about its practices.