(CLO) South Korea fined Google and Apple a total of nearly $48 million for policies that allegedly restrict payment options for app developers.
On October 28, the Korea Media and Communications Commission (KMCC) announced its decision to fine two American technology companies a total of 63.71 billion won (approximately $47.6 million). This marks the first time the Korean regulatory body has imposed penalties under regulations added to the 2021 Telecommunications Business Act aimed at preventing app distribution platforms from forcing developers to use certain payment methods.
According to regulators, Google was fined 42.9 billion won, while Apple was fined 20.81 billion won. Both companies were required to cease their violations, allow users access to out-of-app payment methods, and adjust their fee policies.
The investigation began in 2022, after authorities reviewed payment policies and app review processes on Google Play and the App Store. By October 2023, the regulatory body had announced plans for sanctions, but it took more than three years to reach a final decision.
According to KMCC’s findings, Google and Apple allow developers to use third-party payment systems, but still apply a 26% fee to these transactions. This high fee, coupled with the operating costs of their own payment systems, makes the alternative less economically attractive than the payment systems provided by the two corporations.
The regulator argued that the conditions attached left developers with virtually no real choice other than using Google or Apple’s payment system.
Google restricts how developers display prices across different payment methods, while Apple requires submitting a separate version of the app to use third-party payment systems. Both companies also limit directing users to external websites for payments.
In addition to payment issues, KMCC concluded that both companies unreasonably delayed app reviews, failing to provide specific reasons or clear processing times even when developers requested explanations.
According to the KMCC’s decision, Google and Apple must allow apps to link users to external payment websites, and adjust their fee structures and app review processes. The two companies have three months from the date of receiving the official decision to implement corrective measures. The regulator expects to publish the decision in November and will continue to monitor compliance.
In response to this decision, Apple stated that it disagrees with the regulatory agency’s conclusion and is considering options that comply with South Korean law . The company affirmed that it has collaborated with external developers to promote innovation through the App Store.
Meanwhile, Google Korea expressed regret that its efforts to comply with the law and support domestic developers were not fully reflected in the penalty decision. Previously, in March 2026, Google announced plans to adjust its payment policies, including allowing payments through external websites and reducing service fees. These changes were expected to take effect on December 31, 2026.
