Google and Apple Continue Unfair Practices in Korea... 63 Billion Won In-App Payment Fines Still Unresolved After Two Years

Dysfunction at the Commission Blocks Fine Imposition
Impeachment and Two-Member System Leave Chair Position Vacant
"Fines Needed to Reduce Burden on Developers"

Due to the Broadcasting and Communications Commission's ongoing dysfunction, the agenda to impose fines of approximately 42 billion won on Google and 21 billion won on Apple related to in-app payment practices has not been resolved for over two years.

On October 10, Choi Sujin, a member of the People Power Party, pointed out, "Institutional reforms and consumer protection measures through fines against Google and Apple are being postponed indefinitely."

Google and Apple, as app market operators, have been criticized for abusing their dominant market positions by charging high fees of up to 30% of sales and forcing the use of their own payment systems.

In response, the Broadcasting and Communications Commission (now the Broadcasting Media and Communications Commission) conducted an investigation into Google and Apple's in-app payment practices and, finding violations of the Telecommunications Business Act, notified them of a corrective action plan in October 2023.

Initially, the Commission planned to impose fines of 47.5 billion won on Google and 20.5 billion won on Apple, but after recalculating based on sales, it prepared a revised proposal in March of this year to impose fines of 42 billion won on Google and 21 billion won on Apple.

However, due to the Democratic Party's push to impeach the Commission's chairperson and claims that it is inappropriate for only two members to deliberate and decide, the Commission has not been able to reach a resolution for over two years. Furthermore, following the recent reorganization of government ministries, the Broadcasting and Communications Commission has been restructured as the Broadcasting Media and Communications Commission, and neither the chairperson nor the members have been appointed yet.

Assemblywoman Choi criticized, "The Commission has only notified Google and Apple of a corrective action plan, which lacks enforcement power, and has failed to impose fines totaling around 60 billion won, which would serve as a substantial sanction. As a result, institutional reforms and consumer protection have yet to be achieved."

She further argued, "It is necessary to impose strong fines on Google and Apple to reduce the burden on developers and minimize harm to the public."