Apple may be facing an investigation by the government of South Korea over whether the tech giant is truly complying with the nation’s new requirements dealing with its payment systems.
As Reuters reported Friday (Oct. 15), the issue stems from South Korea’s recent changes to the Telecommunication Business Act in an effort to prevent tech giants Apple and Google for charging developers commissions on in-app purchases.
The law went into effect in September, with Apple telling the government of South Korea that it was already in compliance and didn’t need to update its app store policy.
“This goes against the purpose of the amended law,” one Korean Communications Commission official said, asking for anonymity as the government was still in talks with Apple.
The KCC will ask Apple’s South Korean operations for a new policy that gives more autonomy in payment methods. If Apple doesn’t comply, the KCC will consider conducting a fact-finding probe ahead of possible fines or other penalties.
The KCC official said Google had informed the commission it would comply with the law and allow third-party payment systems and would discuss the matter with the KCC next week.
Neither Google or Apple replied to requests for comment.
Apple has more to lose here than Google, said Jung Jong-chae, a lawyer who specializes in antitrust matters.
“(The) 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 said, “and (Apple) has more to lose if its dominance breaks on any front, which could lead to calls for openness on other fronts.”
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Apple Rejects Spotify’s Updated App Over In-App Pricing Disclosure
Apr 25, 2024 by
CPI
FCC Set to Reinstate Net Neutrality Rules Today
Apr 25, 2024 by
CPI
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI