South Korea watchdog finds Google, Apple violated app market rules

South Korea’s media regulator on Wednesday concluded that Google and Apple have violated the country’s telecommunications law by abusing their dominant positions in their respective app marketplaces.

The Korea Media Communications Commission reached the decision during a regular meeting, while the level of sanctions against the two US technology giants will be determined later, Seoul-based Yonhap News Agency reported.

The case centers on a 2021 revision to South Korea’s Telecommunications Business Act aimed at preventing major app marketplace operators from forcing developers to exclusively use their proprietary in-app payment systems.

Under the change, Google and Apple allowed customers to make purchases through third-party payment systems.

However, the companies imposed transaction fees of around 26% on purchases made using alternative payment methods, prompting criticism that the charges effectively undermined the purpose of the legislation.

South Korea became the first country to impose legal restrictions on major app-store operators over mandatory in-app payment systems.

In October 2023, the country’s media watchdog warned that it planned to impose the maximum possible fines on Google and Apple over their payment practices.

The regulator, however, has yet to carry out those penalties.