Google and Apple Fined Nearly $48 Million Over App Store

South Korea has fined Google and Apple a combined $47.6 million for violating the country’s laws governing app stores and payment systems.

The Korea Media and Communications Commission (KMCC) found that both companies unfairly restricted how app developers could accept payments and imposed unreasonable conditions on alternative payment methods.

Google received a fine of approximately $32 million, while Apple was fined around $15.6 million. The regulator has also ordered both companies to change their app store policies and allow more payment options.

Google and Apple Restricted Payment Options

According to the KMCC, Google and Apple pressured developers to use their own in-app payment systems. Although both companies allowed developers to use certain third-party payment services, they charged a 26% commission on those transactions.

The regulator found that these services also lacked some features available through the companies’ own payment systems, including subscription management. In addition, Google and Apple prevented developers from directing users to external websites to complete payments.

The KMCC said these restrictions made alternative payment methods less attractive and effectively pushed developers toward the companies’ own payment systems.

South Korea passed legislation in 2021 prohibiting app store operators from forcing developers to use specific payment systems.

App Review Delays and Unfair Charges

The regulator also found problems with how Google and Apple handled app reviews. According to the investigation, both companies sometimes delayed reviews without clearly explaining the reasons or providing information about when the process would resume. They also failed to properly respond to developers’ questions about these delays.

Apple faced an additional finding over its commission policies. The KMCC found that Apple calculated fees differently for South Korean developers and developers from other countries. For South Korean developers, Apple calculated its commission using prices that included value-added tax (VAT).

However, for overseas developers, the company calculated fees using prices before VAT. The regulator determined that this practice unfairly disadvantaged South Korean developers.

Companies Ordered to Change Their Policies

Following its investigation, the KMCC ordered Google and Apple to allow developers to provide links to external payment websites within their apps. The companies must also revise their commission policies and improve their app review procedures.

Google has been directed to change its guidelines for third-party payments, while Apple must remove its requirement for developers to submit separate apps when offering alternative payment methods.

Apple must also ensure that its commission policies do not discriminate between South Korean and overseas developers.

Both companies must submit plans explaining how they will comply within one month of receiving the orders. They will then have three months to implement the required changes. The regulator did not file criminal complaints against either company.

Apple and Google Respond

Apple has disagreed with the regulator’s decision, arguing that its existing policies comply with South Korean law.

The company said its payment system helps protect customers against fraud and other risks.

Apple is reviewing its legal options. Google also expressed disappointment, saying the regulator had not adequately considered its recent efforts to expand payment choices and reduce fees.

The company announced changes to its payment policies in March, including plans to support external payments and lower service fees.

Both Apple and Google already allow external payment options in certain other markets, including the United States and the European Union.

Investigation Began in 2022

The KMCC began investigating Google and Apple’s app store practices in 2022.

The investigation included on-site inspections and reviews of payment policies, developer fees, and app approval procedures.

The regulator announced its final decision on October 28, 2026.

This is the first enforcement action under South Korea’s 2021 law restricting mandatory in-app payment systems.

The KMCC said it will continue monitoring the app market to ensure that companies comply with the rules and offer developers fairer payment options.

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