Apple was on a collision course with South Korea on Friday over new necessities that it cease forcing app builders to make use of its fee programs, with a authorities official warning of a doable investigation into the iPhone maker’s compliance.
The improvement comes after South Korea amended the Telecommunication Business Act in August to attempt to curb the tech majors’ market dominance and cease the massive app retailer operators akin to Apple and Google from charging commissions on in-app purchases.
The regulation went into impact final month, however Apple had informed the South Korean authorities that it was already complying and didn’t want to alter its app retailer coverage, a Korea Communications Commission (KCC) official accountable for the matter informed Reuters.
“This goes against the purpose of the amended law,” the official mentioned, requesting anonymity because the KCC was nonetheless in talks with Apple on compliance.
The regulator would ask Apple’s South Korean unit for a brand new firm coverage giving larger autonomy in fee strategies, and if Apple did not comply, would contemplate measures akin to a fact-finding probe as a precursor to doable fines or different penalties.
Apple didn’t instantly reply to a request for remark.
Google had knowledgeable the KCC that it deliberate to adjust to the regulation, together with permitting third-party fee programs, and would talk about the matter with the regulator beginning subsequent week, the KCC official mentioned.
Google didn’t instantly reply to a Reuters’ request for remark.
Jung Jong-chae, a lawyer specialising in antitrust issues, mentioned Apple had extra 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 informed 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
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