South Korea’s Fair Trade Commission (KFTC) is scrutinizing potential monopolistic practices by major app store operators – Google (Play Store) and Apple (app Store). This includes examining in-app purchase systems, commission rates, and restrictions on app developers. Specifically, the KFTC is investigating whether these companies are unfairly leveraging their market dominance.
Recent developments include:
* 5-Year Investigation: The KFTC has been investigating Google’s in-app purchase policies for approximately 5 years,focusing on the ‘unfair’ commission fees.
* Developer Concerns: App developers have voiced concerns regarding the KFTC’s investigation of Apple’s in-app purchase policies, specifically regarding ‘commission-related issues’ and restrictions on alternative payment methods.
* previous Penalties: In 2022, the KFTC imposed a penalty on Google for obstructing app developers from using their own payment systems.
The KFTC’s investigation extends to:
* ‘Apple Pay’ Restrictions: Concerns regarding restrictions on the use of ‘Apple Pay’ by app developers.
* Commission Rates: Scrutiny of commission rates charged by both Google and Apple, and whether these rates are excessive.
* Payment System Control: Investigation into whether google and Apple are unfairly controlling the payment systems within their app stores.
Moreover, there’s growing emphasis on Environmental, Social, and Governance (ESG) factors. Companies are increasingly expected to demonstrate responsible business practices, including fair treatment of app developers and transparent commission structures. This pressure extends to app store operators, requiring them to balance profitability with ethical considerations.
The KFTC is employing various methods to gather information,including document requests,developer interviews,and QR code-based surveys to collect data from a wider range of app developers.
