South Korea's media regulator has found that Apple and Google effectively pushed app developers toward their own payment systems, and has fined both companies, according to the Associated Press as relayed by MacRumors.
The Korea Media and Communications Commission concluded that the two platform owners breached a 2021 South Korean law that was meant to open the door to alternative in-app payment options. Apple was fined 20.8 billion won, roughly $15.5 million, while Google received a larger penalty of 42.9 billion won, about $32 million.
What the regulator found
According to the report, both companies did allow third-party payment services inside apps, but attached a 26% commission and restricted certain features when developers used them. The commission said those conditions steered developers back to Apple's and Google's own billing systems. Rules that barred developers from linking out to external payment options added to the problem, the regulator said.
The commission also criticized app review practices. It found that some reviews were delayed without a clear explanation or any indication of when they would resume.
What Apple must change
As part of the decision, Apple has been ordered to let developers link to external payment options from within their apps. Both Apple and Google must also improve how they handle app review.
Separately, the report says Apple charged South Korean developers higher commissions than developers elsewhere between 2015 and January 2023.
Apple's response
Apple told the Associated Press that it disagrees with the ruling and is weighing its legal options. The company maintains that its policies comply with South Korean law and says its payment system helps protect customers from fraud.
South Korea was among the first countries to pass legislation targeting app store payment practices, and the 2021 law at the center of this case has been closely watched by developers and regulators elsewhere. The ruling adds to the pressure on Apple's App Store rules in markets outside the United States and European Union.
Apple has not said whether it will appeal, and the report does not indicate when the required changes would have to take effect.
Source: MacRumors, citing the Associated Press.
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