S. Korea warned heavy sanctions on Apple, Google might backfire

US economist Michael Mandel told South Korean regulators not to compromise the security and privacy needs of consumers when sanctioning Apple and Google.

South Korea is compelling Apple and Google to use their in-app payment systems.

However, Mandel, vice president and chief economist of the Progressive Policy Institute (PPI), said that the danger is that sanctions against Apple and Google could make it easier for malware providers, which would be bad for Korean users.

He took a position that was utterly at odds with that of US and Korean mobile content producers, who have asked the Korean government to take tough measures against the two internet giants.

The US-based Coalition for App Fairness In a letter sent last month, a nonprofit organization made up of app developers stated its support for Korean politicians who have requested the Korea Communications Commission to look into Apple and Google.

Mandel recognized that the gaming and entertainment industries would prefer that Apple and Google impose lower commission rates so that they can more effectively monetize their apps through in-app sales and download fees.

However, he anticipates that the present method, which practically always screens malware for free, will continue to be preferred by banks, shops, manufacturers, telemedicine service providers, and travel app operators.

Mandel pointed out that both businesses invest a lot of technological resources in checking programs for viruses before they are submitted to their official app stores.