South Korea fines Google, Apple for pushing app developers onto their payment systems

South Korea's media and telecommunications regulator recently imposed a combined fine of 63.7 billion won (€42.7 million) on tech giants Google and Apple. The Korean regulator accused the two US companies of leveraging their dominance in app stores to compel developers to utilize their own payment systems. The Korea Media and Communications Commission (KMCC) cited violations of a 2021 law that forbids app stores from mandating developers to use a particular payment method—a regulation South Korea enacted as the pioneer in the world.

Despite allowing developers to incorporate other payment systems, Google and Apple imposed a 26% commission on such transactions, a charge that is marginally lower than their 30% fee for in-app purchases via their own systems. Moreover, the regulator determined that both companies impeded developers' access to external payment options and delayed app reviews without providing adequate explanations or timelines.

Apple was additionally found to have charged South Korean developers higher rates than those in other regions between 2015 and January 2023, as it computed its commission on prices that included value-added tax. As a result of the investigation initiated in August 2022, Google faces a penalty of 42.9 billion won (€28.7 million), while Apple is ordered to pay 20.8 billion won (€13.9 million).

The regulator has granted both firms one month to submit improvement plans, with a three-month window to implement the necessary changes. KMCC Chair Kim Jong-cheol expressed hope that the sanctions would spur genuine market transformation, stressing that South Korean law would apply uniformly to both local and foreign entities. As of now, Google and Apple have not issued any public statements regarding the decision.

This case draws parallels to ongoing disputes in the European Union, where the Digital Markets Act (DMA) mandates that leading digital platforms refrain from obstructing developers from directing users to alternative deals. In April 2025, Apple received a €500 million fine from the European Commission for blocking such user redirection on its app store, a ruling that the company has since appealed.

In August 2025, Apple announced revised EU terms, effective from October 1, which reduced its standard in-app purchase commission to 26% from 30% and introduced a 15% rate when developers steer users elsewhere for transactions. Concurrently, Google faced a €890 million fine from Brussels, including €430 million for restricting developers on Google Play from directing users to cheaper purchase options.

Subsequently, Google modified some of its fees and terms on Google Play, and the Commission is currently reviewing the matter. Apple is also contemplating an appeal of the €500 million fine.