"Forced In-App Purchases, High Commission Fees"
80 Billion Won in Damages, Losses Grow Every Year
No Corrective Action Despite Legislation Banning Forced In-App Purchases
Pressure Mounts Through International Class Action Lawsuit
The Korean Publishers Association announced that on May 23, it filed a class action lawsuit against Apple in the United States District Court for the Northern District of California.
This class action was initiated by the Korean Publishers Association and the Korea Electronic Publishing Association on behalf of domestic app developers who distribute applications through the Apple App Store. The association claimed that since 2020, Apple has enforced in-app purchases and imposed a high commission rate of 30%, causing approximately 80 billion won in damages to the domestic publishing sector.
The association pointed out, "Although Korea became the first country in the world to legislate a ban on mandatory in-app purchases in 2021, Apple has not taken any corrective action despite legislative measures by the National Assembly and corrective orders from the Fair Trade Commission and the Korea Communications Commission."
This class action is interpreted as a move to increase pressure on Apple by filing a lawsuit in the United States District Court for the State of California, based on the judgment that domestic measures alone have limitations. Law firm Jihyang and the U.S.-based Hausfeld LLP have been appointed as co-counsel, and a class action complaint has been submitted on behalf of all app developers in Korea.
In the complaint submitted on May 23, Jihyang and Hausfeld claimed that Apple: ▲ forced the use of its own in-app payment system and imposed excessive and unfair in-app purchase fees (up to 30%); ▲ gave preferential treatment to its own services (such as Apple Music) while disadvantaging competing apps; and ▲ unilaterally changed and notified policies in ways that were unfavorable to developers. They demanded measures to prevent recurrence and compensation for damages, including compensation for past damages.
The association explained the significance of the lawsuit by stating, "Many internet IT and content companies, including publishers, have faced difficulties due to the unfair market dominance of platform companies. By acting as the lead plaintiff in this class action, the association aims to curb the arbitrary operations of big tech companies running app markets, marking an important first step toward creating a healthy digital ecosystem that can achieve sustainable growth."
Kim Hwancheol, president of the Korea Electronic Publishing Association, stated, "This lawsuit is for everyone who believes they have suffered damages due to the policies of Apple and Google. In particular, we ask for the active participation and support of developers in various fields, including those who distribute publishing, web novel, and webtoon apps."
The association also announced its plan to file a lawsuit against Google in the near future.
Regarding the lawsuit, Apple stated, "Apple values its relationship with Korean developers very highly. The App Store has been a driving force for innovation and economic growth in Korea, enabling developers of all sizes to reach users through a trusted platform. This lawsuit does not accurately reflect how the App Store operates. Apple will continue to innovate so that the App Store remains a safe and trusted platform for users and provides excellent business opportunities for Korean developers."
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