South Korea fines Apple and Google over app payment rules
Developers in South Korea may now be able to send users to outside payment options, though Apple says it disagrees and is considering legal action.
South Korea's Korea Media and Communications Commission has fined Apple 20.8 billion won, about $15.5 million, and ordered it to permit developers to link out to outside payment options from within their apps. Google received a larger penalty of 42.9 billion won, roughly $32 million. The regulator concluded that both companies, despite allowing third-party payment services, effectively forced developers onto their own billing systems in breach of a 2021 law, pointing to a 26% commission and feature restrictions as the pressure points. Both firms must also tighten their app review process, which the commission faulted for unexplained delays. A separate finding says Apple charged domestic developers higher commissions than overseas ones from 2015 through January 2023. Apple says it disagrees with the decision, is weighing its legal options, and maintains its policies comply with local law while protecting customers from fraud.
Why it matters
The ruling targets the way app stores route payments through their own billing systems, which affects both developers who sell digital goods and users who pay for them. Under the order, Apple must allow links to outside payment options inside apps, and both companies must tighten how they review apps. Apple's position is that its policies comply with local law and protect customers from fraud, so the practical change for developers and users will depend on how that dispute is resolved.
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