South Korea’s telecommunications regulator, the Korea Communications Commission (KCC), has officially accused tech giants Alphabet Google and Apple of abusing their dominant positions in the app market. The regulator has also warned of potential fines that could reach a staggering $50.5 million.
According to a statement released by the KCC on Friday, the two Silicon Valley powerhouses have been allegedly coercing app developers to adhere to specific payment methods and causing unjustifiable delays in the app review process. These actions have raised significant concerns about anti-competitive behavior within the South Korean app ecosystem.
In response to these allegations, the KCC is taking steps to address the situation. The commission has begun notifying Google and Apple of the need for corrective measures, and it will deliberate on the imposition of fines based on the severity of the violations.
In a statement to Reuters, Google acknowledged the KCC’s actions, stating, “What KCC has shared today is the ‘pre-notice,’ and we will carefully review and submit our response. Once the final written decision is shared with us, we will carefully review it to evaluate the next course of action.” The tech giant appears to be gearing up for a potential legal battle to defend its position.
Apple has responded with a statement expressing its disagreement with the KCC’s findings. The Cupertino-based company asserted, “We disagree with the conclusions made by the KCC in their Examiner’s Report, and believe the changes we have implemented to the App Store comply with the Telecommunications Business Act. As we have always done, we will continue to engage with the KCC to share our views.”