South Korea Investigate App Stores Violating In-App Payment Rules

Google's app store faces investigation from South Korean regulators. (photo: ary julianto/voi.id)

JAKARTA - South Korea's telecommunications regulator announced on Tuesday, August 9 that it plans to launch investigations into app store operators such as Apple Inc, Alphabet's Google and One Store for alleged violations of in-app payments law.

The potential fine for violations can be as high as 2% of the average annual income from the related business practice, the law says. The regulator did not specify the scale of the possible fine in this case.

Under a law passed last year that took effect in March, operators of major app stores such as Google and Apple are prohibited from forcing software developers to use their payment systems.

The Korea Communications Commission (KCC) said in a statement that it had been carrying out inspections since May 17 to determine whether Google, Apple and One Store had violated the rules and had determined that all three may have done so.

In a statement, a Google spokesperson said: “We have been working closely with government stakeholders and our developer community to expand user choice in Korea in accordance with the new law, while continuing to ensure we can invest in the ecosystem and provide a safe and high-quality environment. . quality experience for all.

"As we do at every stage of this process, we will continue to work closely with KCC," a Google spokesperson said.

Apple and One Store did not immediately comment when contacted by Reuters.

The KCC added that it plans to take strict action such as correction orders or imposing fines if the investigation finds prohibited activities.

Prohibited actions include app market operators unfairly delaying review of mobile content, or denying, delaying, limiting, deleting, or blocking registration, renewal or inspection of mobile content using third party payment methods.