Apple Targeted Over New App Store Payment System Regulation in South Korea

The development comes after South Korea amended the Telecommunication Business Act in August.

Advertisement
By Reuters | Updated: 15 October 2021 13:01 IST
Highlights
  • South Korea introduced Telecommunication Business Act in August
  • It plans to curb Big Tech’s market dominance
  • The law aims to stop Apple, Google from charging commissions

Apple may face probes or other penalties in South Korea

Apple was on a collision course with South Korea on Friday over new requirements that it stop forcing app developers to use its payment systems, with a government official warning of a possible investigation into the iPhone maker's compliance.

The development comes after South Korea amended the Telecommunication Business Act in August to try to curb the tech majors' market dominance and stop the big app store operators such as Apple and Google from charging commissions on in-app purchases.

The law went into effect last month, but Apple had told the South Korean government that it was already complying and did not need to change its app store policy, a Korea Communications Commission (KCC) official in charge of the matter told Reuters.

Advertisement

"This goes against the purpose of the amended law," the official said, requesting anonymity as the KCC was still in talks with Apple on compliance.

Advertisement

The regulator would ask Apple's South Korean unit for a new company policy giving greater autonomy in payment methods, and if Apple failed to comply, would consider measures such as a fact-finding probe as a precursor to possible fines or other penalties.

Apple did not immediately reply to a request for comment.

Advertisement

Google had informed the KCC that it planned to comply with the law, including allowing third-party payment systems, and would discuss the matter with the regulator starting next week, the KCC official said.

Google did not immediately reply to a Reuters' request for comment.

Advertisement

Jung Jong-chae, a lawyer specialising in antitrust matters, said Apple had more to lose than Google from the Korean regulation.

"Differences between Apple and Google in willingness to give ground may be because Apple controls everything from hardware to operating system (OS) to app market to payment system," he told Reuters.

"And (Apple) has more to lose if its dominance breaks on any front, which could lead to calls for openness on other fronts."

© Thomson Reuters 2021


This week on Orbital, the Gadgets 360 podcast, we discuss iPhone 13, new iPad and iPad mini, and Apple Watch Series 7 — and what they mean to the Indian market. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Samsung Galaxy S26 Series Specifications Leaked in Full
  2. Microsoft Announces Windows 11 Insider Preview Build With These Features
  3. Lava Agni 4 Teased With Dual Rear Camera System Ahead of Launch
  4. One UI 8.5 Leak Reveals Samsung's New AI-Powered Priority Notifications
  5. Apple Tipped to Launch iPhone 18 Pro in Three Entirely New Colours
  6. Starlink Is Hiring for Multiple Roles in Bengaluru Ahead of Launch in India
  1. Lava Agni 4 Teased to Come With Dual Rear Camera System; Certification Site Listing Reveals Battery Specifications
  2. Microsoft Announces Latest Windows 11 Insider Preview Build With Ask Copilot in Taskbar, Shared Audio Feature
  3. Samsung Galaxy S26 Series Specifications Leaked in Full; Major Camera Upgrades Tipped
  4. iPhone 18 Pro Tipped to Launch in Burgundy, Coffee, and Other New Colour Options
  5. SpaceX Revises Artemis III Moon Mission with Simplified Starship Design
  6. Rare ‘Second-Generation’ Black Holes Detected, Proving Einstein Right Again
  7. Starlink Hiring for Payments, Tax and Accounting Roles in Bengaluru as Firm Prepares for Launch in India
  8. Google's 'Min Mode' for Always-on Display Mode Spotted in Development on Android 17: Report
  9. OpenAI Upgrades Sora App With Character Cameos, Video Stitching and Leaderboard
  10. Samsung's AI-Powered Priority Notifications Spotted in New One UI 8.5 Leak
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.