South Korea fines Google and Apple $47.6 million over app store practices
Regulators in South Korea have fined Google and Apple for forcing developers to use company-specific payment systems and obstructing competition.
The Korea Media and Communications Commission (KCC) has imposed a combined fine of 63.7 billion won ($47.6 million) on Google and Apple, citing abuse of market dominance in the app store sector. The regulator concluded that the tech companies engaged in anti-competitive practices by forcing local app developers to use their proprietary payment systems.
The penalty follows a long-term investigation into compliance with a 2021 law designed to prevent app market operators from mandating the use of internal payment systems. While the companies technically permitted third-party payment options, the KCC found that high commission fees and technical limitations effectively coerced developers into using the platforms' own billing systems.
Google received a fine of 42.9 billion won, while Apple was penalized 20.8 billion won. Additionally, the commission flagged issues regarding opaque app review processes, noting that developers often faced unexplained delays. Apple specifically faced accusations of charging South Korean developers higher commission rates than those in other regions over an eight-year period.
This action reinforces South Korea's stance on regulating foreign technology firms. The nation previously gained international attention as the first to legally mandate that app store operators must provide developers with alternatives to their native payment systems.