South Korea has fined Google and Apple a combined 63.7 billion won (€42.7 million) for allegedly abusing their dominant positions in the app market by restricting developers’ payment options and delaying app reviews.

The Korea Media and Communications Commission (KMCC), the country’s media and telecommunications regulator, announced the penalties on Wednesday, October 28, following an investigation into the business practices of the two US technology companies.

Google was fined 42.9 billion won (€28.7 million), while Apple received a penalty of 20.81 billion won (€13.9 million). The regulator also ordered both companies to revise their business procedures, allow developers to direct users to external payment options and improve their app review processes.

The investigation, which began in 2022, examined whether the companies had violated South Korea’s 2021 Telecommunications Business Act, which prohibits app market operators from forcing developers to use particular payment systems.

South Korea became the first country to enforce legislation restricting app store operators from requiring developers to use their own in-app payment systems.

Regulator Says Developers Were Effectively Forced to Use In-House Payment Services

The KMCC found that Google and Apple imposed conditions that made it difficult for developers to use alternative payment methods.

Although both companies permitted certain third-party payment systems within apps, they charged developers a 26 per cent commission on transactions made through those alternatives. The regulator said the companies also withheld some features available through their own payment services, reducing the practical benefits of using competing systems.

Google was accused of restricting how developers could display prices when offering alternative payment options. Apple, meanwhile, required developers offering alternative payments to submit separate applications, according to the regulator.

The commission concluded that these conditions placed unreasonable burdens on developers and effectively pushed them towards the companies’ preferred payment systems.

Payments completed through external websites were also restricted, preventing developers from freely directing users to other payment services.

Under the corrective orders, Google and Apple must allow South Korean developers to include links to external payment options within their apps. They must also revise their app review procedures and address the restrictions identified by the regulator.

The companies are required to submit compliance plans within one month of receiving the corrective orders and implement the required changes within three months.

Apple Disputes the Decision as Google Expresses Regret

Apple said it disagreed with the regulator’s decision and was reviewing its next steps under South Korean law.

The company maintained that the changes it had already introduced complied with the Telecommunications Business Act. It also argued that its App Store ecosystem continued to provide substantial benefits to developers.

Apple said more than 90 per cent of revenue generated through its App Store ecosystem had returned to developers in the previous year.

Google expressed regret over the decision, arguing that the regulator had not adequately considered its recent policy changes intended to expand developers’ payment options and reduce service fees.

In March 2026, Google announced changes to its payment policies that included allowing external payment options and lowering certain fees.

The KMCC said it would continue monitoring developments to ensure the companies implemented the required changes and that the domestic app market became more open and competitive.

Apple Also Accused of Charging South Korean Developers Higher Commissions

The investigation identified an additional issue involving Apple’s commission structure.

According to the KMCC, Apple charged South Korean developers higher effective commissions than developers in other countries between July 2015 and January 2023.

The regulator said Apple calculated commissions for overseas developers using prices that excluded value-added tax (VAT), while applying its commission to the final consumer price, including VAT, for South Korean developers.

The commission determined that this difference amounted to discriminatory treatment under South Korean telecommunications law.

Apple was ordered to revise its business procedures to prevent similar discrimination between domestic and overseas developers.

South Korea Joins Wider International Scrutiny of App Store Practices

The penalties add to regulatory pressure on Google and Apple over the way their app marketplaces operate.

In the European Union, the Digital Markets Act (DMA) requires major digital platforms designated as gatekeepers to comply with rules intended to promote competition. These include restrictions on preventing developers from directing users towards alternative purchasing options.

In April 2025, the European Commission fined Apple €500 million for breaching the DMA’s anti-steering provisions. Apple appealed the decision.

In August 2026, Apple announced revised terms for its European Union app store, effective October 1. The changes reduced its standard commission on in-app purchases from 30 per cent to 26 per cent and introduced a 15 per cent rate for certain transactions completed after developers direct users elsewhere.

Google has also faced significant penalties in Europe. In July 2026, Brussels imposed a €890 million fine, including €430 million related to restrictions on developers directing Google Play users towards cheaper purchasing options.

Google subsequently changed some of its Google Play fees and terms, which the European Commission is assessing. The company has appealed the fines.

The South Korean decision demonstrates how regulators in different jurisdictions are examining whether app store operators use their market positions to restrict competition and limit developers’ choices.

Regulator Promises Fair Enforcement of South Korean Law

KMCC Chairperson Kim Jong-cheol said the decision was intended to encourage a more balanced relationship between app market operators and developers.

He stressed that developers’ contributions were important to innovation and the sustainability of the mobile app ecosystem.

Kim also reaffirmed that South Korean law would be enforced equally against domestic and foreign companies.

The regulator said it would continue reviewing platform operators’ business practices and addressing areas where changes were necessary to protect users and improve competition.

The penalties and corrective orders mark a significant enforcement action under South Korea’s legislation governing app marketplace payment practices. Their longer-term impact will depend on how Google and Apple implement the changes and whether developers gain greater freedom to offer alternative payment options.