South Korea penalises Apple and Google over app payment rules
South Korea’s communications regulator has fined Apple and Google for violating rules governing app stores and ordered both companies to change their business practices. The decision concerns payment choices and app review processes, and adds to regulatory pressure on how the companies manage payments through their platforms.
Google was fined KRW 42.9 billion (about $32 million), while Apple must pay KRW 20.81 billion (about $15.6 million). Following investigations and inspections that began in 2022, the regulator found the companies required in-app payment methods, charged 26 per cent commission on third-party payments and restricted external payments. It also cited delayed app reviews without clear explanations; Apple was additionally found to calculate commissions differently for South Korean and overseas developers.
In short
- South Korea fined Google KRW 42.9 billion and Apple KRW 20.81 billion.
- The regulator found restrictions on external payments and other app store practices.
- Both companies must revise their payment and app review procedures.
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The strongest fair case each way — we don't pick a winner.
The case for
The fines and required changes can be defended as enforcing South Korea’s rules and preventing dominant app stores from using their control over distribution to steer developers towards costly payment systems. Allowing genuine payment choice and clearer review processes could improve competition, transparency and developers’ ability to reach customers on fairer terms.
The case against
Apple and Google could argue that integrated payment systems help protect users, reduce fraud and provide consistent support, while commissions fund app distribution, review and security. They may also contend that restrictions and review procedures are needed to maintain platform standards, and that regulators should weigh those benefits and the costs of compliance before compelling changes to established systems.
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Originally published by Engadget as “Apple and Google fined in South Korea over app store violations”.