South Korea’s communications regulator has penalized both Apple and Google for violating the nation’s Telecommunications Business Act regarding their app stores. Google received a fine of KRW 42.9 billion, equivalent to $32 million, while Apple was ordered to pay KRW 20.81 billion, which is about $15.6 million.
Investigation Findings and Violations
The Korea Media and Communications Commission (KMCC) stated that it has carried out fact-finding investigations and on-site inspections targeting the tech giants since 2022. The agency determined that both companies breached local regulations for the app market sector by compelling users to utilize their proprietary in-app payment systems. Furthermore, the regulator found that they imposed a 26 percent commission for third-party payments and banned external payment options entirely.
The regulator also reported that Apple and Google delayed app reviews without offering clear explanations and failed to answer individual inquiries regarding those delays. Additionally, the KMCC discovered that Apple calculated its commissions differently depending on the developer’s location. For South Korean developers, the company based its cut on purchase prices including value-added tax, whereas it used pre-VAT prices for foreign developers.
Required Business Practice Changes
Following these conclusions, the KMCC is mandating that both corporations accept external payment methods and update their app review procedures. The regulatory body specifically instructs Apple to stop discriminating between domestic and international app developers. Both companies already support external payments in the United States and the European Union.
