Google and Apple Fined 63.7 Billion Won in Decision 3 Years in the Making

[Anchor]

The Broadcasting and Media Communications Commission has imposed a fine of 63.7 billion won on Google and Apple for virtually forcing app developers to use their proprietary in-app payment systems.

The regulatory decision comes after three years. Reporter Bae Jun-woo reports on the background.

[Reporter]

To use paid services such as YouTube Premium or games on mobile phones, payments are virtually possible only through Google and Apple's dedicated app platforms.

The commission fees Google and Apple charge app developers are roughly ten times higher than those of external payment systems, shifting the burden of the higher charges onto consumers.

Viewing Google and Apple's practices as a violation of the so-called law banning forced in-app payments, the Broadcasting and Media Communications Commission imposed fines of 42.9 billion won on Google and 20.8 billion won on Apple.

[Kim Jong-cheol / Chairperson, Broadcasting and Media Communications Commission: "To correct unlawful practices such as forcing specific payment methods and levying discriminatory commission fees, and to protect the rights and interests of app developers and users."]

The commission also issued corrective orders requiring the companies to establish external payment systems.

This action comes three years after the former Korea Communications Commission initially prepared the sanctions plan.

An administrative vacuum spanning more than two years under the KCC's "two-member system," coupled with strong backlash from the United States following a massive fine imposed on Coupang last June, are also reported to have influenced the delay.

Analysts say the regulator moved forward with the sanctions as trade frictions somewhat subsided amid domestic U.S. issues such as the war in Iran and the midterm elections.

Although the commission also ordered the companies to implement corrective measures by early next year, Apple and Google have issued statements indicating they do not agree with the decision.

[Lee Seon-hee / Head of Value-Added Telecommunications Market Investigation Division, Broadcasting and Media Communications Commission: "Since this falls under the scope of business autonomy, it is somewhat difficult for us to confirm that part."]

With Google and Apple, two flagship American tech giants, voicing disagreement, concerns are mounting that the decision may fail to achieve practical results while only reigniting trade tensions.

(Camera: Park Hyeon-cheol | Video Editing: Lee SEUNGHEE | Design: Byeon Dayoung)

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