South Korea has fined Google and Apple a combined KRW 63.71 billion (about US$47.6 million) over app store rules.
It is the first case under a 2021 law banning app stores from forcing payment methods on developers.
The Korea Media and Communications Commission (KMCC) fined Google KRW 42.9 billion (about US$32 million) and Apple KRW 20.81 billion (about US$15.5 million).
It ordered both firms to revise rules that limit payment choice and their app review procedures.
According to KMCC, developers could only use the platform’s own in-app payment or build their own system. However, the firms barred external payments.
Developers using their own system still paid a 26% commission and did not get features such as subscription management.
The firms overlooked costs beyond payment gateway fees, such as building payment systems, KMCC said.
In addition, Google limited how prices were shown by payment method, while Apple required separate app submissions.
As a result, the terms effectively forced developers to use the platform’s own payment, the regulator said.
Both firms also delayed app reviews without specific reasons or clear timelines, KMCC found.
Separately, from July 2015 to January 2023, Apple charged overseas developers its 30% commission on prices before VAT.
Domestic developers, however, paid it on the final consumer price. KMCC ordered Apple to prevent a recurrence.
“As user protection issues involving platform operators continue to grow, we will closely review the overall market and address areas that need improvement, building the foundation for a fair and open mobile ecosystem,”
said Kim Jong-cheol, Chairperson at KMCC.
In March, Google announced a policy allowing external payments and lower service fees, while Apple briefed KMCC on planned changes. The regulator will monitor how they take effect in Korea.
Featured image: Edited by Fintech News Hong Kong, based on image by krakenimages.com via Magnific.
