The KCC has stated it will not go forward with the fines until it receives responses from both companies. Credit: Tada Images/shutterstock.com

Google and Apple could face a $50m (₩ 68bn) fine, according to a statement made by Korea’s Communications Commission (KCC). 

According to the KCC, Google and Apple are at risk of having violated Korea’s Telecommunications Business Act by unethical payment methods towards app market developers, potentially abusing their market positions.

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The KCC’s allegations have been made as a result of its own enquiry into the companies which began 16 August 2022. 

The KCC stated that its intent in its investigation and subsequent fines towards the companies was to promote a healthy app market and safeguard user choice. 

The Commission also reiterated that it had a right to reinforce Korea’s Telecomms Business Act to both domestic and foreign companies operating in Korea and stated that it would continue its observation of tech companies. 

In a statement made to Reuters, Google stated that the KCC had only issued a “pre-notice” warning Google of these fines. It promised to carefully review the notice and respond whilst awaiting the KCC’s final decision regarding the fines. 

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Google’s market dominance is also facing scrutiny in the US, where it is part of an ongoing anti-trust trial regarding allegations of the company unfairly monopolising the search engine market. 

However, as research analyst GlobalData states in its thematic intelligence report into tech regulation, many large fines have been “easy to shrug off” by companies the size of Apple or Google. 

Because of this, the report speculates that this does not provide Big Tech with enough incentives to properly amend their behaviour after similar measures have been taken against them. 

A final decision regarding the fine will be made after the KCC has received responses from both Apple and Google. 

The KCC stated that it will go through deliberations on these fines with these companies’ responses in mind.