South Korea Imposes Fines on Google, Apple Over App Payment Rules
The Korea Media and Communications Commission (KMCC) approved the penalties on Wednesday, citing breaches of the Telecommunications Business Act. It also ordered both companies to take corrective action but decided against filing criminal complaints.
The regulator said the two technology companies had misused their dominant positions in the app market by forcing developers to rely on designated payment systems and placing unfavorable conditions on alternative payment methods offered by third parties.
The decision follows an investigation that began approximately three years earlier, when the commission first informed Google and Apple of the alleged violations in October 2023, according to reports.
Under the ruling, both companies must enable developers to provide alternative payment options, including links directing users to external payment services within applications. They must also establish reasonable fees for third-party payment systems.
Google has been instructed to amend its guidelines governing alternative payment methods. Apple, meanwhile, must eliminate a requirement that developers submit separate applications when introducing alternative payment options.
KMCC Chairman Kim Jong-cheol emphasized the importance of cooperation between technology platforms and developers in creating a balanced digital marketplace.
“A fair and sustainable app market ecosystem can be achieved through a cooperative and mutually beneficial relationship between app market operators and developers,” he said.
Both companies are required to submit compliance plans within one month of receiving the corrective orders and complete the mandated changes within three months.
Google expressed disappointment with the decision, arguing that the regulator had failed to account for recent policy revisions intended to broaden developers’ payment choices and lower commission charges.
Apple also challenged the ruling, noting that more than 90% of revenue generated across its App Store ecosystem was returned to developers last year.
“Apple believes that the changes it has implemented to date comply with the Telecommunications Business Act,” the company said. “We are reviewing our next steps based on Korean law.”
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