South Korea’s telecommunications regulatory authority announced on Friday that Google, a subsidiary of Alphabet, and Apple are exploiting their dominant positions in the app market and warned of potential fines totaling $50.5 million.
The Korea Communications Commission stated in a press release that the two tech giants have compelled app developers to follow specific payment methods and caused unjust delays in app reviews.
The statement indicated that the commission has notified both companies to take corrective actions, and discussions regarding fines will be held.
Google and Apple have not immediately responded to requests for comment from Reuters.
In 2021, South Korea amended its telecommunications business law, prohibiting app store operators from forcing software developers to use their payment systems.
The commission stated that Google and Apple imposing specific payment methods and “charging discriminatory fees by Apple to local app developers” likely undermines the law’s purpose, which is to promote fair competition.