MikhbarMIKHBAR
Mobile

South Korea Fines Apple and Google Over App Store Rules

South Korean regulatory authorities have issued financial penalties against major technology firms Apple and Google for violating the country's telecommunications regulations.

South Korea Fines Apple and Google Over App Store Rules

Regulatory Action Against Major Tech Firms

South Korean communications regulators have announced financial penalties against both [Apple] and Google following an extensive investigation into the operations of their digital marketplaces. According to the country's communications regulator, both companies have [violated] local legislation governing the app market sector, specifically the Telecommunications Business Act.

The enforcement actions follow fact-finding investigations and on-site inspections conducted by authorities since 2022. The regulatory body [determined] that the tech giants engaged in unfair practices that restricted developer choices and consumer payment methods within South Korea.

Fines and Specific Violations Identified

Under the regulatory orders, Google faces a financial penalty amounting to KRW 42.9 billion, which translates to approximately $32 million. Meanwhile, Apple has been ordered to pay KRW 20.81 billion, equivalent to roughly $15.6 million in penalties.

The Korea Media and Communications Commission (KMCC) detailed several specific infractions discovered during their multi-year inquiry. Investigators found that the two corporations forced users to rely exclusively on their proprietary in-app payment systems, prohibited external payment alternatives entirely, and imposed a commission rate of 26 percent on third-party payment options.

Seoil
Image related to the report from Engadget · Source: Engadget

App Review Delays and Commission Discrepancies

Beyond payment restrictions, the KMCC reported additional operational complaints involving developer treatment. Regulators discovered that app reviews were frequently delayed without transparent justification, and the companies failed to respond adequately to individual developer inquiries regarding these bottlenecks.

Furthermore, the investigation uncovered a geographic discrepancy in how Apple calculated its developer commissions. The tech giant computed its commercial cut differently for South Korean developers compared to overseas counterparts. Specifically, domestic cuts were calculated based on purchase prices inclusive of value-added tax (VAT), whereas international developers were assessed on pre-VAT pricing structures.

Required Business Adjustments and Global Context

As a direct result of these investigative findings, the KMCC is mandating that both firms overhaul specific aspects of their local operations. The platforms must officially accommodate external payment methods and completely revise their internal app review workflows to ensure fairness and transparency.

In addition to those universal mandates, Apple has been instructed to halt discriminatory practices that separate domestic app developers from overseas creators. Industry observers note that while these regulatory changes are new to South Korea, both companies already accommodate external payment structures in other major regions, such as the [US] and the [European Union].

Sources

  • EngadgetApple and Google fined in South Korea over app store violations

Continue chronologically

Related entity coverage