On October 28, reports surfaced indicating that the Korea Communications Commission (KCC) is set to levy a combined fine of 63.7 billion won (equivalent to roughly $48.1 million) on Google and Apple. The penalty is for compelling app developers to utilize their respective in-app payment systems. Citing sources with knowledge of the situation on Monday, the KCC is scheduled to convene a plenary session on Wednesday. The session's purpose is to endorse corrective measures, imposing a fine of 42.9 billion won on Google and 20.8 billion won on Apple.
In-app payment systems mandate that users finalize transactions through Google's or Apple's designated payment channels, bypassing the app developers' own payment mechanisms. These tech behemoths levy commissions of up to 30% on developers' earnings, a practice that has ignited widespread discontent among developers due to the perceived exorbitant fees.
The decision to impose this penalty comes three years after South Korean regulatory authorities initially signaled their intent to penalize the two American tech giants. During a national policy review on October 12, KCC Chairman Kim Jong-phil remarked that a definitive ruling was anticipated by the end of October.
