The Korea Communications Commission (KCC), South Korea's telecommunications watchdog, has charged Google and Apple with abusing their dominant market share in apps. The KCC has warned the big tech companies that they could face $50.5 million in fines.

The KCC claims that the two businesses have coerced app developers into using particular payment methods, slowed down app reviews, and fostered unfair competition in the app market. The commission will decide on fines and is informing businesses of the need for corrective action.

The Telecommunication Business Act in South Korea was amended in 2021 to prohibit app store operators from requiring software developers to use their payment systems.

According to the Korea Communications Commission (KCC), the enforcement of specific payment methods by Google and Apple, as well as Apple's "discriminatory charging of fees to domestic app developers," are likely to undermine the law's intention to promote fair competition.

In a statement, Apple expressed its disagreement with the findings drawn by the KCC in their Examiner's Report. They feel that the Telecommunications Business Act is being complied with by their most recent changes to the App Store. Apple declared that they would keep communicating with the KCC to express their opinions as they always have.

Reuters was informed by Google that the information shared by KCC today is a "pre-notice" and that they will carefully review it before providing their response. They will review the final written decision and choose the appropriate course of action after it has been shared with them.

After hearing from both companies, Korean regulators will fine Google and Apple up to 68 million won ($50.47 million).

Google’s history with South Korean regulators

The Fair Trade Commission (KFTC) of South Korea fined Google $32 million in May of this year for preventing the release of mobile video games on One Store, a local Korean rival to Google's Play Store.

From June 2016 to April 2018, Google allegedly mandated that Korean video game companies exclusively release their new games on the Play Store, preventing local game developers from releasing their content on One Store.

The KFTC fined Google $177 million in 2021 for abusing its monopoly position in the market for Android operating systems. Google asserts that it has helped Korean mobile game developers who have put their titles on Play over the past ten years grow and expand successfully around the world.