The Korea Communications Commission (KCC) has issued a stern warning to Alphabet Inc (NASDAQ:GOOG)'s Google and Apple Inc (NASDAQ:AAPL), stating that both companies have violated fair competition norms in the country's app market.
According to reports, the South Korean regulatory body is contemplating imposing fines that could amount to as much as $50.5 million.
A statement from the KCC accuses Google and Apple of compelling app developers to adopt specific payment systems, thereby creating an unjust delay in app reviews. The regulator is currently in the process of notifying both tech giants to take corrective measures.
In response to the KCC's preliminary notice, Google stated that it would "carefully review and submit our response" once it receives the final written decision. Apple, on the other hand, contested the KCC's findings.
The company asserted that its recent changes to the App Store are in compliance with South Korea's Telecommunications Business Act.