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S.Korea targets Apple over new app store regulation

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The Apple Inc. emblem is seen hanging on the entrance to the Apple retailer on fifth Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar

SEOUL, Oct 15 (Reuters) – Apple Inc was on a collision course with South Korea on Friday over new necessities that it cease forcing app builders to make use of its fee methods, with a authorities official warning of a doable investigation into the iPhone maker’s compliance.

The event comes after South Korea amended the Telecommunication Enterprise Act in August to attempt to curb the tech majors’ market dominance and cease the large app retailer operators akin to Apple and Alphabet Inc’s Google from charging commissions on in-app purchases.

The legislation went into impact final month however Apple had instructed the South Korean authorities that it was already complying and didn’t want to alter its app retailer coverage, a Korea Communications Fee (KCC) official in control of the matter instructed Reuters.

“This goes in opposition to the aim of the amended legislation,” the official stated, requesting anonymity because the KCC was nonetheless in talks with Apple on compliance.

The regulator would ask Apple’s South Korean unit for a brand new firm coverage giving better autonomy in fee strategies, and if Apple didn’t comply, would take into account measures akin to a fact-finding probe as a precursor to doable fines or different penalties.

Apple didn’t instantly reply to a request for remark.

Google had knowledgeable the KCC that it deliberate to adjust to the legislation, together with permitting third-party fee methods, and would focus on the matter with the regulator beginning subsequent week, the KCC official stated.

Google didn’t instantly reply to a Reuters’ request for remark.

Jung Jong-chae, a lawyer specialising in antitrust issues, stated Apple had extra to lose than Google from the Korean regulation.

“Variations between Apple and Google in willingness to offer floor could also be as a result of Apple controls the whole lot from {hardware} to working system (OS) to app market to fee system,” he instructed Reuters.

“And (Apple) has extra to lose if its dominance breaks on any entrance, which might result in requires openness on different fronts.”

Reporting by Joyce Lee; Enhancing by Miyoung Kim and Stephen Coates

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