South Korea Fines Google and Apple Over App Market Practices

South Korea has fined Alphabet’s Google and Apple a combined 63.7 billion won ($47.6 million) for abusing their dominance in app store markets. The Korea Media and Communications Commission, the country's media and telecommunications regulator, announced the penalties Wednesday, citing practices that forced local developers onto their own payment systems and led to unfairly delayed app reviews.

The investigation, which spanned several years, focused on alleged violations of a 2021 law prohibiting app store operators from mandating specific payment systems. The commission found that while Google and Apple technically allowed third-party payment options within apps, they imposed a 26% commission and withheld certain features available through their native systems. This effectively compelled developers to use the companies' in-app payment methods.

Google was fined 42.9 billion won ($32 million) and Apple received a penalty of 20.8 billion won ($15.5 million). Both companies were ordered to permit South Korean developers to utilize external payment links within their applications and to enhance their app review procedures.

The commission also addressed allegations of delayed app reviews, stating that Google and Apple failed to provide clear explanations for the delays or timelines for resolution to developers. Additionally, Apple was accused of charging South Korean developers higher commissions than those in other regions between 2015 and January 2023.

South Korea has been a notable regulator of foreign technology companies, becoming the first country in 2021 to enforce a law against app market operators requiring the use of proprietary in-app payment systems. Google and Apple did not immediately respond to requests for comment.