Apple and Google's antitrust lawsuits: CEO says Big Tech market access should be restricted when violating Korean law

Tim Sweeney, CEO of Epic Games, has strongly criticized the monopolistic practices of major US technology companies, arguing that financial penalties are an inadequate response. He believes that imposing fines on these tech giants can be circumvented, as their CEOs can lobby the US president to frame such penalties as "attacks on America," potentially leading to trade sanctions against the countries imposing them.

“

US Big Tech's monopolistic practices are a 'trap'. Imposing fines is like a trap.

Sweeney, who has been engaged in a six-year legal battle against Google and Apple over their in-app payment policies, advocates for alternative measures. He suggests that instead of solely relying on fines, market access for these companies should be restricted until they comply with local laws. This approach, he contends, would be more effective in compelling behavioral change.

South Korea was the first country to enact a law prohibiting mandatory in-app payment systems in 2021, aiming to curb the "갑질" (gapjil or abusive power) of Google and Apple, which charge a 30% commission on mobile content sales. While South Korea initially proposed fines totaling 68 billion won for Google and Apple in 2023, the final decision has been delayed for three years due to administrative issues.

“

To fight monopolistic companies in the US, we need to find ways to persuade the US other than fines.

Sweeney expressed concern that fines might inadvertently grant Big Tech a "political victim" status in the US without forcing substantial changes in their practices. He pointed to Apple's discriminatory practices in South Korea, where it imposes a 26% commission on third-party payments, significantly higher than the 20% charged in the EU, despite a court order in the US that halted similar practices there. Sweeney hopes that an upcoming decision by South Korea's Fair Trade Commission will lead to new regulations to address these issues.

“

The game industry is a huge market worth $100 billion annually, but monopolistic platforms have been taking a 30% cut without creating any value.

Epic Games achieved a victory against Google in December 2023, leading Google to lower its global in-app payment fees and allow third-party app store installations on Android. However, the legal fight with Apple continues, with Apple implementing a 27% commission for external payment methods, a move Epic Games is still contesting.

“

Tim Cook is a master manipulator of the US political system to protect Apple's illegal practices.