Title | KCC Contemplating up to 68 Billion Won Penalty Surcharge and Corrective Measures for Google and Apple | ||
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Date | 2023-10-06 | Read | 6261 |
The Korea Communications Commission (KCC, Chairman Lee Dong-kwan) is going to impose corrective measures and penalty surcharges for Google and Apple on October 6, 2023, according to the result of a fact-checking investigation over unfair practices, including forcing specific payment methods of app market operators initiated August 16, 2022. The KCC reasoned that Google and Apple violated prohibited acts of the Telecommunications Business Act as the two tech giants forced specific payment methods and unfairly delayed application assessment by abusing their market positions. The enforcement of specific payment methods by Google and Apple is a significant concern because it has the potential to undermine the primary goal of the amended act in September 2021, which is to promote fair competition in the app market. In addition, the KCC notified a corrective measure draft for Apple’s discriminatory charging of fees to domestic app developers. The KCC will make a final decision on up to 68 billion won penalty surcharge, including 47.5 billion won for Google and 20.5 billion won for Apple, after hearing opinions from business operators on the draft and going through processes, such as deliberation and decision. The draft has meaning as it puts strong sanctions on platform giants for abusing their dominant positions, thereby fostering a healthy app market environment and contributing to a fair and open mobile ecosystem. The Commission aims to ensure a healthy app market and safeguard users' choices through rigorous law enforcement, as leveraging market dominance to impose a specific payment method can have a detrimental impact on the broader mobile ecosystem. The KCC will strictly enforce laws regardless of domestic or foreign business operators when dominant players violate laws to maintain or strengthen their positions. It will also continue market surveillance for unlawful practices that have potential to hamper fair competition or harm users' interests. |
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