South Korea’s Broadcast Media Communications Commission said it is difficult to view Google’s recent app market fee cut policy as a voluntary corrective step to be reflected in reducing penalties. It cited that the policy does not apply to the Korean market.

The commission held its 27th full meeting on Aug. 12 and deliberated an agenda for corrective orders over alleged violations of the Telecommunications Business Act by Google and Apple, including forcing specific payment methods.

Lee Sun-hee (이선희), acting head of the commission’s value-added telecom market investigation division, said of whether Google’s policy to lower its fee rate to a minimum of 10 percent could be a factor in reducing penalties: "Google announced the policy, but it is not applicable in the Korean market, so there is a need to review it," adding, "Based on the current assessment, it is difficult to see it as a voluntary correction."

Lee added, "It is an issue that needs review in the course of discussions at the commission."

Sanction procedures against Google and Apple have continued for about 4 years. At the time, the Korea Communications Commission conducted a fact-finding probe from August 2022 into alleged unfair practices such as forcing specific payment methods, then notified the companies in October 2023 of a proposed corrective order based on the findings. The regulator at the time sought to impose penalties totaling 68 billion won, including 47.5 billion won on Google and 20.5 billion won on Apple.

A revised proposal was later prepared to adjust the penalties by recalculating sales and other figures to about 42 billion won for Google and 21 billion won for Apple in 2025, but it was not put to a commission vote. Deliberations resumed under the newly launched commission system on the day, but the final level of penalties and other measures was again left for a later vote.

The commission sees Google and Apple as having violated prohibited conduct under the Telecommunications Business Act by using their trading position to force specific payment methods and unduly delaying app reviews. It also judges Apple’s alleged unfair discriminatory fee practices as a violation.

At the meeting, the secretariat reported its views on the facts and its assessment of illegality, and heard the opinions of Google and Apple as the parties under review.

Kim Mi-jung (김미정), acting director for market investigation deliberations at the commission, said, "Since the hearing of Google and Apple’s opinions was conducted behind closed doors, it is difficult to comment on specific details," adding, "We ensured their right to defense so they could sufficiently explain the main points that the commission had judged to be illegal acts."

Specific measures, including penalties, were not discussed at the meeting. Kim said, "Today we reported the secretariat’s views on the facts and the assessment of illegality," adding, "No other specific measures were discussed."

The commission plans to hold further deliberations among commissioners and make a final vote on corrective orders against Google and Apple soon.

Separately, standing commissioner Ryu Shin-hwan (류신환) applied for recusal, citing that his law firm is serving as legal counsel in litigation related to the case. Ryu will be excluded from deliberation and voting on the agenda.