Apple fined $15.5 million as South Korea orders changes to App Store rules
Apple and Google were fined today in South Korea over their app payment practices, with regulators also ordering both companies to change several policies. Here are the details. more…
South Korea's Korea Media and Communications Commission (KMCC) has imposed a fine of $15.5 million on Apple and ordered the tech giant to revise its App Store policies, citing violations of the Telecommunications Business Act. This marks the first enforcement case under the 2021 amendment to the act, which prohibits certain practices by app market operators.
The three violations for which Apple was fined include forcing specific payment methods, unfairly delaying app reviews, and imposing discriminatory commissions. The KMCC claimed that Apple and Google effectively compelled developers to use their in-app payment systems by imposing a 26% commission and restricting third-party alternatives. As a result, Apple and Google must revise their policies to accommodate external payment methods and address restrictions on developers utilizing alternative payment systems.
Furthermore, the KMCC found that Apple delayed app reviews by failing to provide clear reasons for delays or respond to inquiries about the reasons and expected timelines for delays. In response, Apple and Google must revise their app review procedures to rectify these issues. Additionally, the KMCC determined that Apple calculated its 30% commission differently for South Korean and overseas developers between July 2015 and January 2023, which constituted a discriminatory practice.
Apple will need to implement measures to prevent such discriminatory commission practices from recurring.
Apple has expressed disagreement with the decision and is currently evaluating its options in accordance with South Korean laws. The company has previously adapted its App Store policies in response to local competition rules in other markets, such as Brazil and Japan, where Apple has introduced alternative distribution and payment options.
Despite facing scrutiny in the European Union, Apple recently overhauled its App Store fees and business terms to address concerns raised by the European Commission. For more details on this decision, refer to the KMCC's full announcement.
Written by urgent.news from 9to5Mac's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
