South Korea has fined Google and Apple a combined $47.6 million over their app store payment practices. The regulator found that both companies restricted developers’ payment options and imposed unfair conditions on alternative payment methods.
The Korea Media and Communications Commission (KMCC) issued the penalties following an investigation into the companies’ app store policies. Google received a fine of approximately $32 million, while Apple was fined around $15.6 million.
The regulator has also ordered both companies to revise their policies. The changes must allow developers to offer more payment options and improve their app review procedures.
Google and Apple Faced Complaints Over Payment Restrictions
According to the KMCC, Google and Apple encouraged developers to use their own in-app payment systems. Although both companies allowed some third-party payment services, they charged a commission of 26% on those transactions.
The regulator also found that alternative payment services lacked certain features available through the companies’ own systems. These included tools for managing subscriptions.
In addition, developers were prevented from directing users to external websites to complete payments. The regulator said these restrictions made alternative options less attractive and encouraged developers to use the companies’ payment systems.
South Korea passed a law in 2021 prohibiting app store operators from forcing developers to use specific payment methods. The latest decision marks the first enforcement action under that legislation.
App Review Delays and Commission Policies Examined
The investigation also examined how Google and Apple handled app reviews. The regulator found that both companies sometimes delayed reviews without providing clear explanations or expected timelines.
They also failed to respond properly to some developer questions about the delays, according to the investigation.
Apple faced an additional finding concerning its commission calculations. The KMCC said Apple included value-added tax (VAT) when calculating commissions for South Korean developers.
However, the company calculated commissions for overseas developers using prices before VAT. The regulator concluded that this difference placed South Korean developers at a disadvantage.
South Korea Orders Changes to App Store Policies
The KMCC has directed Google and Apple to allow developers to include links to external payment websites within their apps. Both companies must also revise their commission policies and improve their app review procedures.
Google must change its guidelines for third-party payment options. Apple has been ordered to remove the requirement for separate app submissions when developers offer alternative payment methods.
Apple must also ensure its commission policies do not discriminate between South Korean and overseas developers.
Both companies must submit compliance plans within one month of receiving the orders. They will then have three months to implement the required changes.
The regulator did not file criminal complaints against either company.
Google and Apple Respond to the Decision
Apple has disagreed with the regulator’s findings and maintains that its policies comply with South Korean law. The company said its payment system helps protect users against fraud and other risks.
Apple is reviewing its legal options following the decision.
Google also expressed disappointment, arguing that the regulator had not adequately considered its recent efforts to expand payment choices and reduce fees.
In March, Google announced payment policy changes that included plans to support external payments and lower service fees.
Both companies already permit external payment options in certain other markets, including the United States and the European Union.
Investigation Began in 2022
The KMCC began investigating Google and Apple’s app store practices in 2022. The inquiry included on-site inspections and reviews of payment policies, developer fees, and app approval procedures.
The regulator announced its final decision on October 28, 2026. It said it would continue monitoring the app market to ensure compliance and promote fairer payment options for developers.
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The penalties and required policy changes could affect how app developers offer payments in South Korea. They also highlight the country’s efforts to enforce rules governing competition and payment choices in digital marketplaces.
