South Korea’s media regulator fined Google and Apple a combined 63.71 billion won on Oct. 28, saying app store rules narrowed developers’ payment choices and violated the Telecommunications Business Act. The Korea Media and Communications Commission (KMCC) also ordered policy changes.
The KMCC said both companies charged developers a 26% commission on third-party payment systems used inside apps. Developers also lacked some features available through the companies’ own systems, including subscription management, and faced payment gateway fees and costs to build payment systems and settle commissions.
The commission cited Google’s rules for showing prices by payment method and Apple’s requirement that developers submit a separate app version to offer third-party payments. It also said developers were not given specific explanations when app reviews were delayed or clear information about when reviews would finish.
Separately, the KMCC found that Apple calculated its 30% commission for South Korean developers using consumer prices that included value-added tax (VAT), while using prices excluding VAT for overseas developers. The regulator said the practice ran from July 2015 through January 2023 and characterized it as discrimination.
South Korea’s Telecommunications Business Act was amended in 2021 to prohibit app market operators from forcing particular payment methods and unfairly delaying app reviews. The KMCC called this its first enforcement action under that amendment. It ordered both companies to change payment policies and review procedures, and directed Apple to prevent discrimination between domestic and overseas developers from recurring.
KMCC Chairperson Kim Jong-cheol said the goal was a fairer, more sustainable app market, with changes visible to developers and users. The Herald Business reported that Google criticized the decision as failing to reflect its compliance efforts and support for Korean developers. The newspaper also reported that Apple said it believed its changes complied with the law and disagreed with the ruling.
The KMCC said Google announced a revised policy in March allowing external payments and lowering service fees. Apple had briefed the commission on planned voluntary improvements. The regulator said it would monitor how the changes are implemented in South Korea.
