South Korea fines Apple and Google $47.6 million — Engadget

South Korea’s regulator has fined Apple and Google for violating the Telecommunications Business Act in the area of app stores. Google must pay 42.9 billion won, or about $32 million, while Apple must pay 20.81 billion won, or $15.6 million. In addition to the fines, the companies were ordered to change their practices involving developers and payments.

Violations in app stores

As Engadget reports, the Korea Media and Communications Commission has been conducting audits and on-site inspections of the companies since 2022. The regulator found that Apple and Google forced users to use their in-app payment systems, charged a 26% commission on payments through third-party services, and prohibited external payments.

The commission also recorded delays in reviewing apps without a clear explanation of the reasons and a lack of responses to some inquiries regarding such delays.

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Requirements for Apple and Google

The regulator ordered both companies to allow external payments and revise their app review procedures. Apple must separately eliminate discrimination between South Korean and foreign developers. According to the commission, Apple calculated the commission for developers from South Korea based on the purchase price including VAT, while for foreign developers it was calculated based on the price excluding VAT.

Apple and Google already allow external payments in the United States and the European Union.