The key facts

  • The KCC fined Google and Apple a combined 63.7 billion won ($45 million) for violating the Telecommunications Business Act
  • The companies are required to allow alternative payment methods and set reasonable fees for third-party payment systems
  • Google and Apple said they disagree with the decision; no criminal cases will be filed

Fine over payment policies

South Korea's broadcasting and telecommunications regulator — the Korea Communications Commission (KCC) — has approved fines for Google and Apple totaling 63.7 billion won (about $45 million) for restricting payment options for app developers, the Anadolu agency reported. The grounds were violations of the Telecommunications Business Act: according to the commission, both companies abused their dominant market position by requiring developers to use specific payment methods and creating unfavorable conditions for third-party payment options.

What exactly the companies are required to do

In addition to the fines, the regulator issued corrective orders but will not file criminal complaints against the companies. Google and Apple must allow developers to offer alternative payment methods, including external payment links inside apps, and set reasonable fees for third-party payment systems. Google is required to revise its rules regarding third-party payments, while Apple must drop the requirement to submit separate versions of apps when alternative payment methods are used. The companies must submit compliance plans within one month of receiving the orders and implement the changes within three months.

The decision took three years to prepare; the companies disagree

According to the agency, citing South Korea's Yonhap, the decision came roughly three years after the regulator first notified Google and Apple of the suspected violations in October 2023. KCC Chairman Kim Jeong-cheol said that 'a fair and sustainable app market ecosystem can be achieved through cooperation and mutually beneficial relations between app store operators and developers.' Both companies disagreed with the decision: Google expressed regret, noting that the commission had not taken into account recent policy changes aimed at expanding payment options and lowering fees. Apple said that more than 90% of App Store ecosystem revenue last year was returned to developers, and that, in its view, the changes made comply with the law; the company is reviewing its next steps in light of Korean legislation.