South Korea Fines Apple Over App Store Payment Rules

South Korea has fined Apple 20.8 billion won, or about $15.5 million, over its App Store payment practices. The ruling also requires the company to allow developers to link to external payment options from within their apps.

The Korea Media and Communications Commission concluded that both Apple and Google effectively forced developers to use their own payment systems. The regulator said this violated a 2021 law passed to open the door to alternative payment methods. Google was fined 42.9 billion won, roughly $32 million.

Why the commission found a violation

According to the commission's assessment, both companies did permit third-party payment services inside apps. However, developers were charged a 26 percent commission for using them, and certain features were restricted. The regulator said these terms steered developers toward Apple's and Google's own payment systems.

Rules against links to external payment options were also treated as a factor limiting developers' choices. Taken together, the commission found that the commission rate, the restricted features and the bans on external links left developers with little practical alternative to the platforms' own payment systems.

The 2021 South Korean law was intended to stop app store operators from forcing developers onto their own payment systems and to clear the way for alternative payment routes. The commission concluded that neither company acted in line with the purpose of that law.

App review processes also under scrutiny

The decision was not limited to payments. The companies were also asked to improve their app review processes. The commission found that some reviews were delayed without a clear explanation or any information on when the process would resume.

The commission also found that between 2015 and January 2023, Apple charged South Korean developers higher commissions than developers based abroad. That finding was made separately from the payment-system violation.

Apple pushes back on the ruling

Apple said it disagrees with the decision and is weighing its legal options. The company maintains that its policies comply with South Korean law. It also argues that its payment system helps protect customers from fraud.

It remains unclear whether Apple will challenge the fine in court; for now, the company says only that it is evaluating those options. How Google has responded to the ruling is not stated in the source material.