Google and Apple Fined 63.7 Billion Won: A Decision Three Years in the Making

[Anchor]

The Broadcasting and Media Communications Commission has imposed fines totaling 63.7 billion won on Google and Apple for effectively forcing app developers to use their proprietary in-app payment systems.

This regulatory decision comes after three years. Reporter Bae Jun-woo looks into the background.

[Reporter]

To use paid services such as YouTube Premium or mobile games on a smartphone, payments can practically be made only through dedicated apps from Google and Apple.

The commission fees Google and Apple charge app developers are about 10 times higher than those of external payment systems, which in turn increases the financial burden on users by the inflated prices.

Concluding that the actions of Google and Apple violate the so-called "law banning forced in-app purchases," the Broadcasting and Media Communications Commission imposed fines of 42.9 billion won on Google and 20.8 billion won on Apple, respectively.

[Kim Jong-cheol / Chairman of the Broadcasting and Media Communications Commission: "This is to rectify unlawful practices such as forcing specific payment methods and charging discriminatory commission fees, and to ensure that the rights and interests of app developers and users are protected."]

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

This action comes three years after the former Korea Communications Commission first drafted the sanctions plan.

An administrative vacuum lasting more than two years under the commission's "two-member system" and strong backlash from the United States following a massive fine imposed on Coupang in June are known to have contributed to the delay.

Analysts suggest that the commission moved forward with the sanctions as trade tensions eased somewhat amid domestic U.S. issues, such as the war in Iran and the midterm elections.

Although the commission ordered them to implement the corrective measures by early next year, Apple and Google released statements indicating their intention to appeal the decision.

[Lee Seon-hee / Head of the Value-Added Telecommunications Market Inspection Division, Broadcasting and Media Communications Commission: "Because that falls within the realm of business autonomy, it is difficult for us to confirm that part."]

With leading U.S. corporations Google and Apple signaling non-compliance, concerns are mounting that the penalties may fail to achieve practical efficacy and instead merely reignite trade frictions.

(Camera: Park Hyun-chul | Video Editing: Lee SEUNGHEE | Design: Byeon Dayoung)
※ Please note: This article was translated by AI and may contain errors.