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South Korea fines Google and Apple over app store payment rules

The regulator imposed 63.71 billion won in fines and ordered changes to payment options for app developers, with compliance deadlines tied to the companies’ receipt of corrective orders.

Government Complex Gwacheon in South Korea
Government Complex Gwacheon, photographed in 2015. This file photograph shows the government complex where the Korea Media and Communications Commission chair spoke about the decision. Government Complex Gwacheon 8 — 최광모 (Kwangmo), Wikimedia Commons (resized and converted to WebP). CC BY-SA 4.0.Image sourceImage licence: CC BY-SA 4.0
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South Korea’s Korea Media and Communications Commission fined Google and Apple a combined 63.71 billion won on October 28, 2026, over app store payment practices, The Korea Herald reported. The decision requires changes to how developers can offer payment options to customers in South Korea.

Google was fined 42.9 billion won and Apple 20.81 billion won, according to The Korea Herald. The commission found that both companies allowed third-party billing in principle but attached fees and restrictions that made alternatives commercially unattractive.

Why the regulator rejected the payment alternatives

Developers using third-party payment systems still faced a 26 percent commission on top of their own payment-processing and operating costs, The Korea Herald reported. According to the regulator, Google restricted how developers could display prices across payment methods, while Apple required separate app submissions for third-party billing. Both companies also restricted payment options outside their apps.

The commission also found that both companies unfairly delayed app reviews without adequately explaining why or providing clear completion timelines, even when developers asked, The Korea Herald reported. Those findings concern the process developers use to get their apps reviewed as well as the payment terms they face.

Apple’s separate commission finding

Apple faced an additional finding over how it calculated commissions for Korean developers. From July 2015 to January 2023, it applied its 30 percent rate to prices including tax in South Korea, while applying the same rate to prices excluding tax overseas, according to The Korea Herald. The commission estimated that the difference generated 149.6 billion won in additional commissions.

Apple attributed the discrepancy to changes in South Korea’s value-added tax law. The regulator rejected that explanation, saying Apple could have used consistent calculation methods across markets, The Korea Herald reported. The regulator reduced the penalty for this practice by 20 percent after Apple voluntarily revised its policy.

What Google and Apple must change

The commission ordered the companies to end the violations, revise their practices, publicly disclose the corrective orders and submit compliance plans and reports, The Korea Herald reported. Yonhap reported that Google must revise its guidelines for the user experience of third-party payments and Apple must drop its separate-app requirement for developers offering alternative payments. The regulator also directed them to allow alternatives including external payment links within apps and to set reasonable fees for third-party payment systems.

The companies must submit compliance plans within one month of receiving the corrective orders and implement the required changes within three months, Yonhap reported. The commission does not plan to file criminal complaints. The Korea Herald reported that it plans to issue written decisions next month and monitor compliance.

Google expressed regret and said the commission had not accounted for its recent policy changes, according to Yonhap. Google announced plans in March to allow external payment options and lower service fees. Commission chair Kim Jong-cheol said a fair, sustainable app market depended on a cooperative relationship between operators and developers.

The decision follows a regulatory process lasting more than three years. The commission’s predecessor proposed fines totaling 68 billion won in October 2023, but a final ruling was repeatedly postponed amid administrative disruptions and organizational changes, The Korea Herald reported.

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