South Korea’s Communications Commission (KCC) said on Tuesday it was investigating Google, Apple and national app store operator One Store Co. over underhanded ways the companies could circumvent national payment laws. integrated.
The regulator’s announcement of the investigation follows interim inspections of the three stores since May 17 for violations of the Telecommunications Business Act [PDF] – a law that promotes the public interest in matters related to telecommunications.
Among other things, the law prevents market-dominant tech giants from making their own payment method the only one available on an app store. South Korea was the first country to impose App Store payment choice with an August 2021 amendment designed to target Google and Apple.
Google agreed to comply in early October 2021, while Apple dragged its feet, saying it had already complied, until KCC persistence and fines of up to 2% of subsequent revenue convinced it on the contrary in January of this year.
South Korea remains the only country to have such a law. Outside the Southeast Asian country, developers are giving away up to 30% of their revenue from app and app purchases made through official stores.
But KCC fears that while Apple and Google appear to be following the law, they’ll find ways to coerce developers into using their native payment systems — or punish those who don’t.
“If Google and Apple impose discriminatory conditions on the payment method (third-party payment) provided by the application developer or make the procedure of use inconvenient, this may constitute an act of imposition of a specific payment method “, says KCC’s announcement (after machine translation).
The watchdog organization added that it understands there are issues with the giants’ app review processes, such as Apple not notifying developers of review periods or reasons for delays.
KCC said it plans to clarify whether such an act indirectly constitutes a “forcing” of a specific payment method. If the regulator finds companies in violation of the laws, there will be “strict measures such as a correction order or fines”.
The addition of One Store to the group of companies under scrutiny by the KCC is noteworthy, as the company belongs to the SK Group – the second largest South Korean conglomerate after Samsung. In April, One Store announced that it would expand globally into Asian and European markets. ®
South Korea’s Communications Commission (KCC) said on Tuesday it was investigating Google, Apple and national app store operator One Store Co. over underhanded ways the companies could circumvent national payment laws. integrated.
The regulator’s announcement of the investigation follows interim inspections of the three stores since May 17 for violations of the Telecommunications Business Act [PDF] – a law that promotes the public interest in matters related to telecommunications.
Among other things, the law prevents market-dominant tech giants from making their own payment method the only one available on an app store. South Korea was the first country to impose App Store payment choice with an August 2021 amendment designed to target Google and Apple.
Google agreed to comply in early October 2021, while Apple dragged its feet, saying it had already complied, until KCC persistence and fines of up to 2% of subsequent revenue convinced it on the contrary in January of this year.
South Korea remains the only country to have such a law. Outside the Southeast Asian country, developers are giving away up to 30% of their revenue from app and app purchases made through official stores.
But KCC fears that while Apple and Google appear to be following the law, they’ll find ways to coerce developers into using their native payment systems — or punish those who don’t.
“If Google and Apple impose discriminatory conditions on the payment method (third-party payment) provided by the application developer or make the procedure of use inconvenient, this may constitute an act of imposition of a specific payment method “, says KCC’s announcement (after machine translation).
The watchdog organization added that it understands there are issues with the giants’ app review processes, such as Apple not notifying developers of review periods or reasons for delays.
KCC said it plans to clarify whether such an act indirectly constitutes a “forcing” of a specific payment method. If the regulator finds companies in violation of the laws, there will be “strict measures such as a correction order or fines”.
The addition of One Store to the group of companies under scrutiny by the KCC is noteworthy, as the company belongs to the SK Group – the second largest South Korean conglomerate after Samsung. In April, One Store announced that it would expand globally into Asian and European markets. ®