South Korea fines Google and Apple 63.7 billion won over app store payment rules

The Korea Media and Communications Commission (KMCC) said the two companies abused their dominant positions by steering developers to their own billing systems and imposing unfavorable terms on third-party payments, Yonhap reported. Developers using outside payment systems still paid a 26% commission, and both companies delayed app reviews without clear explanations, the regulator found, according to The Korea Herald, which said these were the first sanctions under a 2021 law banning such practices.

The KMCC also issued corrective orders requiring the companies to allow alternative payment methods, including external payment links inside apps, and to set third-party payment fees at reasonable levels. The companies must submit compliance plans within one month of receiving the orders. The commission said it would not file criminal complaints. The penalties were first proposed in October 2023.

Why it matters: The decision is South Korea's first use of fines under its 2021 app store law against the two companies that run the country's main app stores, after more than three years of proceedings.