Seoul Regulator Fines Google and Apple Over App Store Rules

South Korea’s media and telecommunications regulator fined Alphabet’s Google and Apple on Wednesday for violating domestic app store laws. The Korea Media and Communications Commission determined that the companies abused their market dominance by restricting payment options and slowing down review processes.

The total fine amounts to 63.7 billion won, equivalent to $47.6 million. Google received the larger penalty at 42.9 billion won, or $32 million, while Apple was fined 20.8 billion won, or $15.5 million. The commission ordered both firms to allow local developers to include external payment links within their applications.

Investigators found that the tech giants charged developers a 26 percent commission for using third-party payment methods. They also withheld specific features available only through their internal systems. The regulator argued this structure effectively forced developers to rely on in-app payments despite technical allowances for alternatives.

The commission also cited delays in app reviews without clear explanations for the wait times. It accused Apple of charging South Korean developers higher commission rates than developers in other regions between 2015 and January 2023. Both companies were ordered to improve their review procedures to ensure transparency.

The enforcement action concludes a multiyear investigation into practices that allegedly breached a 2021 statute. That law made South Korea the first nation to ban app store operators from requiring users to use specific in-app payment systems. Google and Apple did not immediately respond to requests for comment on the decision.