South Korea has fined Google and Apple a combined 63.7 billion won (€42.7 million) over practices that regulators say restricted developers’ freedom to choose payment systems and delayed app reviews. The Korea Media and Communications Commission imposed penalties of 42.9 billion won (€28.7 million) on Google and 20.8 billion won (€13.9 million) on Apple following an investigation launched in August 2022.
The decision concerns South Korea’s 2021 law prohibiting app store operators from forcing developers to use designated payment systems. South Korea was the first country to introduce such a rule, placing restrictions on the control that major mobile platforms can exercise over in-app transactions.
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2 assetsAlthough Google and Apple formally permitted alternative payment options, regulators found that the companies charged a 26% commission on transactions processed through external payment systems, compared with 30% for their own systems. The commission concluded that the relatively small difference, combined with restrictions on certain features and the blocking of payments through external websites, left developers with limited practical alternatives.
The investigation also identified concerns about app review procedures. According to the regulator, both companies delayed reviews without adequately explaining the reasons for the delays or providing clear information about when the process would resume. Apple faced an additional finding concerning its treatment of South Korean developers, having charged commissions calculated on prices that included value-added tax between 2015 and January 2023.
Under the regulator’s order, both companies must allow South Korean developers to include links to external payment options within their apps and improve their app review processes. They have one month to submit compliance plans and three months to implement the required changes. Commission chair Kim Jong-cheol said the sanctions were intended to produce tangible changes in the market and emphasized that South Korean law applies equally to domestic and foreign companies. Neither company had publicly responded to the decision at the time of the report.
The ruling adds to mounting regulatory pressure on the business model used by major app store operators, particularly their ability to determine how developers charge customers and what fees apply to transactions. For developers, the practical value of alternative payment systems depends not only on whether they are technically permitted but also on whether the associated commissions and restrictions make them commercially viable.
The dispute also reflects a broader regulatory confrontation in Europe. Under the European Union’s Digital Markets Act, designated gatekeepers face restrictions on preventing developers from directing users toward alternative purchasing options. Apple was fined €500 million by the European Commission in April 2025 over restrictions on such practices, a decision the company appealed. Apple subsequently announced revised EU terms that reduced its standard in-app purchase commission to 26% from 30% and introduced a 15% rate for certain purchases completed after developers directed users elsewhere.
Google has also faced enforcement action in Europe. In July 2026, Brussels imposed a reported €890 million fine, including €430 million related to restrictions on developers directing Google Play users toward cheaper purchasing options. Google has since changed some fees and terms, which the European Commission is assessing, and has appealed the fines.
The parallel cases highlight how regulators in different jurisdictions are challenging the fees and contractual restrictions imposed by dominant app distribution platforms. South Korea’s next test will be whether the mandated changes create meaningful alternatives for developers rather than simply formal permission to use other payment providers. The companies’ compliance plans and the implementation of the new requirements will be important indicators of how substantially the ruling changes the economics of app distribution in the country.
