Apple [NASDAQ: AAPL] Warned by South Korea Over New App Store Regulation

Apple Inc. [NASDAQ: AAPL] has received a warning from South Korean authorities over new app store regulations. The authorities have warned the tech giant to avoid pushing app developers to use its payment systems. South Korean authorities have warned Apple that it will face investigation if not follow the country’s rules.

The warning comes after South Korea modified the Telecommunication Business Act in August to try to reduce the tech majors’ market dominance and prevent the big app store operators such as Apple and Alphabet Inc’s Google from demanding commissions on in-app purchases. The new regulations were enforced last month.

After the enforcement of new regulations, Apple disclosed that it was already obeying and did not need to change its app store policy. Korea Communications Commission is presently in discussion with Apple Inc. The authorities would request Apple’s South Korean unit for a new company policy giving greater independence in payment methods.

Furthermore, the authorities disclosed that if Apple will not comply with the new regulation, then KCC would consider measures such as a fact-finding probe as a precursor to possible fines or other penalties. Apple did not give its stance regarding this matter.

On the other hand, Google had told the KCC that it has decided to conform with the law, including allowing third-party payment systems, and would talk about the matter with the regulator starting next week.