South Korea fines Apple and Google over app store rules

Summarised from 2 outlets · Updated 29 Oct, 10:57 · Archive

South Korea has fined Apple 20.8 billion won and Google 42.9 billion won for violating app store regulations.

South Korea's communications regulator has fined Apple 20.8 billion won ($15.5 million) and Google 42.9 billion won ($32 million) for violating app store regulations. The Korea Media and Communications Commission conducted investigations since 2022 and found the companies violated the country's Telecommunications Business Act.

Both companies were found to have effectively required developers to use their payment systems. When they allowed third-party payment services, they charged developers a 26 per cent commission and imposed restrictions that pushed developers toward using Apple and Google's own systems instead. The regulator determined these conditions violated a 2021 law intended to allow payment alternatives.

The commission also found that Apple charged South Korean developers higher commissions than overseas developers between 2015 and January 2023, basing the cut on prices including VAT for domestic developers but on pre-VAT prices for overseas developers. Both companies delayed app reviews without providing clear reasons or information about when reviews would resume.

As a result, both firms have been ordered to allow external payment links from apps and revise their app review procedures. Apple is also required to prevent discrimination between domestic and overseas developers. Apple told the Associated Press it disagrees with the ruling and is considering its legal options, saying its policies comply with South Korean law and protect customers against fraud.

How it is being reported

• Apple and Google fined in South Korea over app store violationsSouth Korean regulators found that Apple and Google violated the country's Telecommunications Business Act.Engadget · 29 Oct, 10:42
• South Korea Rules Against Apple Over App Store Payment RulesSouth Korea has fined Apple 20.8 billion won ($15.5 million) and ordered it to let developers link to external payment options from their apps, The Associated Press reports. The Korea Media and Communications Commission found that Apple and Google effectively require developers to use their payment systems, violating a 2021 law intended to allow alternatives. Google was fined 42.9 billion won ($32 million). Both companies allowed third-party payment services within apps, but charged developers a 26% commission and restricted some features. The regulator said these conditions pushed…MacRumors · 28 Oct, 16:00

In this story: Apple · Google · South Korea · Korea Media and Communications Commission

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log