South Korea Fines Apple and Google $47.4 Million Over In-App Payment Rules — BigGo Finance

South Korea’s media regulator hit Apple and Google with a combined 63.7 billion won ($47.4 million) in fines on Wednesday and ordered both American companies to rewrite the rules governing how developers can take payments inside their apps, the first enforcement action under a 2021 statute that made the country a global pioneer in curbing app store power.

The Korea Media and Communications Commission (KMCC) levied 20.81 billion won (approximately $15.5 million) against Apple and 42.9 billion won (approximately $32.0 million) against Google, according to the commission’s decision at a plenary meeting in Gwacheon. The regulator also issued corrective orders requiring the companies to let developers link out to external payment options, to fix their app review procedures, and, in Apple’s case, to stop discriminating between domestic and overseas developers in how commissions are calculated.

The penalties close a case that began with an investigation in August 2022 and was first signaled in October 2023, when the KMCC’s predecessor proposed sanctions of roughly 68 billion won (approximately $50.6 million). Finalizing the decision took about three years, a delay the regulator attributed to disruptions in its own composition and operations.

At the heart of the ruling is a finding that the two companies left developers with no practical alternative to their own billing systems. Although third-party payment services were nominally permitted inside apps, the commission found that a 26% commission on those transactions — against a standard 30% rate for in-app purchases — plus the loss of features such as subscription management and the added cost of payment gateway and settlement systems made the alternative uneconomic. Google restricted developers from displaying prices for different payment methods, while Apple required those wanting third-party billing to submit a separate app. Payments completed through external websites were blocked outright.

“This constitutes an act in which an app market operator unfairly uses its position in transactions to force mobile content providers and others to use a specific payment method,” the KMCC said in its announcement.

The regulator also found that both companies stalled app reviews without telling developers why, or when a decision might come. In the earlier investigation, Google was found to have delayed about 10,000 of roughly 5 million registered and reviewed apps without stated cause, while Apple delayed about 1,600 of 75,000 reviews.

Apple drew an additional finding on fee calculation. From July 2015 through January 2023, the company based its 30% commission for overseas developers on the pre-tax supply price, but applied the same rate to South Korean developers on the final consumer price including value-added tax. The KMCC estimated the practice cost domestic developers about 149.6 billion won (approximately $111.4 million) in extra fees and deemed it unjustified discrimination.

Note: Figures are the final amounts set by the Korea Media and Communications Commission, capped at the legal ceiling based on relevant domestic revenue.

The companies must submit compliance plans within one month of receiving the order and complete the changes within three months. The commission said it will review whether the plans and results match the intent of the order, and that it has not yet determined whether Google’s March overhaul of its external payment and fee policies satisfies the requirements.

Apple rejected the finding. The company “disagreed with the decision and was evaluating options in accordance with South Korean laws,” according to Reuters, adding that it has worked with outside developers to enable innovation through its App Store. Apple also said its App Store ecosystem generated 38.1 trillion won in billings and sales for developers over the past year, more than 90% of which went to developers without any commission. Google said it was disappointed the decision did not fully reflect its recent policy changes expanding payment flexibility and lowering fees, and that it would review the written decision before deciding on next steps.

The orders do not cap or ban fees on external link payments. A KMCC official said at a briefing that the commission had not regulated whether or how much companies may charge for purchases made through outside links, leaving it unclear how much relief developers and users will ultimately see. The commission is also weighing raising the statutory cap on fines, which it said limits its enforcement reach, and is preparing revisions to the relevant law, enforcement decree and public notice.

KMCC Chairperson Kim Jong-cheol said he hoped the sanctions would produce real change in the market and stressed that South Korean law applies equally to domestic and foreign companies.

The case adds to a mounting series of regulatory clashes over app store rules. South Korea became the first country to bar app store operators from mandating specific payment systems when it amended the Telecommunications Business Act in 2021, a measure widely dubbed the “anti-Google law.” In Europe, the European Commission fined Apple 500 million euros (approximately $558.0 million) in April 2025 under the Digital Markets Act for blocking developers from steering users to cheaper options, a decision Apple has appealed. Apple later cut its standard in-app commission in the EU to 26% from 30% and set a 15% rate when developers direct users elsewhere to complete a purchase. Brussels fined Google 890 million euros (approximately $993.2 million) in July, including 430 million euros (approximately $479.9 million) for restricting Google Play developers from pointing users to cheaper purchase options; Google has appealed and has since revised some fees and terms.

The relatively modest size of the Korean penalties is likely to draw scrutiny. Analysts note the amounts are small against the two companies’ global revenue, and questions remain over whether the fines were calculated on Korean revenue or on the parent companies’ results. The decision also lands amid trade friction between Seoul and Washington following a fine of more than 600 billion won (approximately $446.9 million) imposed on Delaware-based Coupang in June over a data breach, which drew objections from the U.S. government.

For developers, the immediate test will be whether the corrective orders translate into functioning external payment links inside apps and predictable review timelines. For investors, the fines themselves are immaterial to earnings, but the precedent matters: South Korea has now shown that its 2021 law carries enforcement teeth, and the KMCC’s stated intent to raise penalty caps signals that future violations could carry heavier costs. How aggressively Apple and Google comply — or litigate — will shape app store economics in one of their most closely watched markets.