Google and Apple's Market Dominance Under Scrutiny in South Korea

The Korea Communications Commission (KCC), South Korea's telecommunications regulator, has accused Alphabet Inc GOOG GOOGL Google and Apple Inc AAPL of abusing their dominant positions in the app market. 

The KCC alleges that both tech giants have forced app developers to adopt specific payment methods and have unfairly delayed app reviews. 

Also Read: Microsoft's Satya Nadella Speaks: AI Could Bolster Google's Search Monopoly

As a result, the companies face potential fines totaling up to $50.5 million, with Google potentially facing a 47.5 billion won fine and Apple a 20.5 billion won fine.

This development follows South Korea's 2021 amendment to the Telecommunication Business Act, which prohibits app store operators from compelling software developers to use their payment systems. 

The KCC contends that Google and Apple's enforcement of specific payment methods and Apple's discriminatory fee charges to domestic app developers are likely undermining the law's objective of fostering fair competition.

Google said it would review the pre-notice and evaluate its next steps upon receiving the final written decision. 

Apple expressed disagreement with the KCC's conclusions, asserting that the changes it implemented in the App Store comply with the Telecommunications Business Act. 

Apple pledged to continue engaging with the KCC to present its perspectives.

Meanwhile, Google is battling an U.S. Department of Justice's antitrust case for paying Apple substantial sums to secure its position as the default search engine. 

Price Action: GOOG shares traded higher by 2.10% at $138.86 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.