Why $51 Million in Fines Against Google and Apple Remain on Hold for Two Years

Choi Soo-jin, a member of the National Assembly's Science, ICT, Broadcasting, and Communications Committee, has pointed out that the sanction procedures for fines intended for Google and Apple have been stalled for nearly two years.

The Broadcast Media Communications Commission—successor to the Korea Communications Commission—had planned to impose fines of approximately 40 billion KRW on Google and 20 billion KRW on Apple, citing their enforcement of in-app payment systems. Yet, according to Choi Soo-jin from the People Power Party, these fines have not been imposed for two consecutive years.

Documents submitted by the Commission to Choi indicate that, in October 2023, the authority concluded that Google and Apple had violated the Telecommunications Business Act and issued draft corrective orders.

Article 50 of the Telecommunications Business Act stipulates that app market operators must not abuse their dominant position by coercing content providers into using specific payment systems or by unduly delaying the review of mobile content.

The Commission determined that Google and Apple had excessively charged discriminatory fees by including value-added tax only for Korean developers, restricted payment methods to either their own in-app payment systems or third-party payment options under unfair conditions, and failed to specify review periods or reasons for delays—actions considered violations under the legislation.

Accordingly, the Commission had decided to levy a total of approximately 68 billion KRW in fines—47.5 billion KRW against Google and 20.5 billion KRW against Apple. In March of this year, however, the amounts were revised after recalculating the companies' revenues: Google’s fine was adjusted to 42 billion KRW, and Apple’s to 21 billion KRW.

To date, the fines have not been officially imposed.

The delay is attributed to internal regulatory disruptions. After Lee Jin-sook, former chairperson of the Broadcasting and Communications Commission, was suspended following impeachment proceedings triggered by the Democratic Party of Korea shortly after her appointment in July last year, the Commission was left with only one member. Although Lee was reinstated when the impeachment was dismissed, further deadlock ensued due to ongoing opposition disputes about the legitimacy of the Commission’s decision-making with just two members. Moreover, the reorganization of the Commission into the Broadcast Media Communications Commission, under the Government Organization Act enacted last September, has further stalled deliberations and resolutions on the sanctions, Choi argued.

Choi stressed, “Because deliberations could not proceed, there has been no real institutional improvement thus far. It is necessary to impose these fines to address the excessive commissions and monopolistic practices of Google and Apple, reduce burdens on developers, and minimize harm to consumers.”

Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”

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