South Korea to look into Apple, Google for potential in-app payment issues

Apple and Google under investigation for in-app payment law violations

Apple and Google are facing scrutiny in South Korea due to a new law requiring them to allow third-party payments. The Korea Communications Commission (KCC) is investigating both tech giants and SK Group’s One Store for potential violations of the in-app payment law. The inspection began on May 17th and raised concerns that all three companies may have broken the rules.

Potential violations and policy changes

It is unclear how exactly the firms may have violated the law, but it was noted that Apple’s delay in communicating changes could have played a role in the investigation. While Google announced its policy change for Android developers last year, Apple only notified developers of the law’s impact several months after it took effect. Both companies still take a portion of purchases made through alternative billing systems, albeit at a reduced rate.

Possible fines and response from companies

The law allows for fines of up to two percent of the average yearly revenue for related businesses, which could result in substantial penalties for the tech giants. Google has stated that it will continue cooperating with the KCC and has worked closely with the government and developers to comply with the law. Apple, for example, paid developers $60 billion worldwide in 2021 and earned significant profits from fees on those sales, making them a lucrative target for potential fines in South Korea.