South Korea App Store Fines Google and Apple

South Korea App Store Fines have brought renewed attention to the way major technology companies manage payments inside mobile applications. On 28 October 2026, South Korea’s Korea Media and Communications Commission (KMCC) fined Google and Apple a combined 63.7 billion won, equivalent to approximately US$47.6 million. The regulator found that the companies violated the country’s Telecommunications Business Act through their app-store payment practices.

The decision focuses on the use of company-owned payment systems, restrictions on alternative payment methods and delays in reviewing applications. The regulator has also ordered both companies to change certain practices and make it easier for app developers to offer other payment options. The case highlights the growing international debate over competition, platform power and the costs faced by developers using major app stores.

Why Did South Korea Fine Google and Apple?

Google and Apple operate two of the world’s major mobile application platforms. Google runs the Google Play Store for Android devices, while Apple operates the App Store for its devices. Both platforms allow users to download applications, purchase digital products and subscribe to online services.

Developers often depend on these platforms to reach customers. However, payment rules can affect how developers charge users and how much money they retain from sales.

South Korea’s KMCC found that Google and Apple used their strong positions in the app market to require developers to use their own in-app payment systems for certain transactions. The regulator also identified unfair delays in app review procedures and conditions placed on alternative payment options.

According to the decision, these practices restricted developers’ choices and created difficulties for businesses that wanted to use other payment services.

Details of the Fines Against Google and Apple

The combined penalty imposed on the two companies was 63.7 billion won. Google received the larger fine, while Apple’s penalty was lower.

Google was fined 42.9 billion won, equivalent to approximately US$32 million. Apple was fined 20.81 billion won, or around US$15.5 million.

The KMCC’s action was based on its findings under South Korea’s Telecommunications Business Act. The law regulates telecommunications businesses and related services, including certain activities involving digital platforms.

The decision is part of a wider effort by regulators in several countries to examine the business practices of large technology companies. Authorities are increasingly looking at whether platform rules give developers fair choices or create unnecessary barriers to competition.

The fines also underline the importance of transparent payment policies in digital markets, where a small number of platforms can control access to large groups of users.

What Is the Telecommunications Business Act?

The Telecommunications Business Act is a South Korean law that governs telecommunications businesses and related services. It provides a legal framework for regulating parts of the country’s communications sector.

In this case, the KMCC used the law to address app-store payment practices that it considered unfair. The regulator found that Google’s and Apple’s requirements limited developers’ ability to choose payment methods for certain in-app transactions.

The decision shows how existing telecommunications laws can be applied to issues involving digital platforms and mobile applications.

As online services become an important part of everyday life, governments are examining how laws should protect competition while allowing technology companies to develop and operate their services.

How In-App Payment Systems Work

In-app payment systems allow users to purchase digital goods or services without leaving an application. Examples include premium subscriptions, digital content, extra features in games and other online services.

When a developer uses a platform’s payment system, the platform may collect the payment and charge a commission according to its rules. Developers must consider these costs when setting prices and planning their businesses.

Google and Apple have their own payment systems for transactions covered by their respective platform policies. The South Korean regulator found that the companies placed conditions on developers who wanted to use alternative payment options.

The KMCC also cited commissions of up to 26% associated with third-party payment options. Such charges can reduce the financial benefit developers receive from offering alternative payment methods.

For smaller developers, payment commissions can be especially important because they may have limited resources for marketing, customer support and product development.

Restrictions on Third-Party Payment Options

Third-party payment systems are payment services provided by companies other than the platform owner. They can give developers another way to collect payments from users.

The KMCC ordered Google and Apple to allow developers to offer alternative payment methods, including external payment links within applications. These links can direct users to other payment services, subject to the requirements established by the regulator and applicable rules.

The decision aims to give developers greater freedom to choose how they receive payments. More options may also encourage competition between payment providers.

However, alternative payment systems can have their own costs and requirements. Developers must consider payment security, customer support, refunds, data protection and other responsibilities when selecting a provider.

The regulator’s orders seek to reduce restrictions that it found unfair, rather than removing every rule governing app payments.

Apple’s Commission Rates Under Scrutiny

The KMCC raised specific concerns about Apple’s treatment of South Korean developers. Its findings included an accusation that Apple applied discriminatory commission rates to developers in South Korea compared with overseas developers.

The cited period for the commission-rate issue ran from July 2015 to January 2023.

Commission rates matter because they influence how much revenue developers retain from digital sales. If developers face different terms based on their location, regulators may examine whether those differences are justified and consistent with applicable laws.

The KMCC’s findings place Apple’s payment policies under further scrutiny in South Korea. The case also reflects wider international discussions about how app stores should set fees and whether developers should be allowed to use external payment services.

Changes Ordered by the South Korean Regulator

Along with the fines, the KMCC issued corrective orders requiring Google and Apple to change certain app-store practices.

Google must revise its guidelines for third-party payments so developers can offer alternative payment options in line with the regulator’s directions.

Apple must remove the requirement that developers submit separate apps when they want to offer alternative payment options. This requirement was one of the practices identified in the case.

Both companies must also allow external payment links within applications and improve their app review procedures. These changes are intended to reduce unnecessary barriers for developers seeking approval for apps or alternative payment arrangements.

The orders could affect how developers design their applications, display payment options and manage transactions for users in South Korea.

Deadline for Compliance and Company Responses

The KMCC has set deadlines for Google and Apple to respond to its corrective orders. Both companies must submit compliance plans within one month of receiving the orders and implement the required changes within three months.

These deadlines give the companies a defined period to explain how they will meet the regulator’s requirements and make the necessary changes to their policies and systems.

Google and Apple have expressed disagreement with the decision. Apple has said it is evaluating its legal options.

The companies’ responses may influence the next steps in the case. Any further legal action or regulatory proceedings will depend on the relevant procedures and decisions by the parties and authorities.

What the Decision Means for App Developers and Users

The South Korea App Store Fines case could have important implications for app developers, payment providers and users.

For developers, access to alternative payment methods may provide more flexibility when managing digital sales. Businesses could compare different payment services and decide which options suit their products and customers.

For payment providers, the decision may create more opportunities to offer services to app developers. Increased competition between providers could encourage improvements in pricing, service quality and payment technology.

Users may also see more payment choices within applications. However, the effect on prices will depend on how developers and platforms respond to the changes. Lower commissions do not automatically guarantee lower prices for consumers.

The case also sends a message to technology companies operating in digital markets: app-store rules and payment systems may face closer scrutiny when regulators believe they restrict fair competition.

South Korea’s decision adds to the global debate about how governments should regulate major technology platforms while protecting innovation and consumer choice. As mobile applications continue to shape shopping, entertainment, gaming and subscription services, payment rules are likely to remain an important issue for developers and regulators.