KMCC: Fines Google, Apple Over App Payment Policies

• South Korea's KMCC fined Google and Apple a combined 63.7 billion won ($47.6 million) for abusing app market dominance.
• The fines were imposed for forcing local developers to use proprietary payment systems and for unfairly delaying app reviews.
• Google received a 42.9 billion won penalty, while Apple was fined 20.8 billion won.
• Both companies are ordered to allow external payment links within apps and improve app review procedures for South Korean developers.
• Apple disputes the decision, stating its practices comply with South Korean law and that it is evaluating legal options.

The regulatory body also mandated that both tech giants permit South Korean developers to integrate external payment links within their applications and to enhance their app review processes.

South Korea's media and telecommunications regulator, the Korea Media and Communications Commission (KMCC), has imposed significant financial penalties on Alphabet's Google and Apple, totaling 63.7 billion won, equivalent to approximately $47.6 million. The regulatory action, announced on a recent Wednesday, stems from findings that both technology giants engaged in practices that abused their dominant positions within the app store markets. Specifically, the KMCC determined that Google and Apple compelled local developers to utilize their proprietary in-app payment systems and also unfairly delayed the review processes for applications.

The KMCC's investigation concluded with a fine of 42.9 billion won ($32 million) levied against Google, while Apple received a penalty of 20.8 billion won ($15.5 million). Beyond the monetary sanctions, the commission issued direct orders to both companies. The regulatory body also mandated that both tech giants permit South Korean developers to integrate external payment links within their applications and to enhance their app review processes, ensuring greater fairness and transparency for developers operating in the South Korean market.

This enforcement action by the Korea Media and Communications Commission follows years of meticulous scrutiny into the operational conduct of foreign technology firms within South Korea. The KMCC's investigation specifically focused on alleged violations of a landmark 2021 law, which was pioneering globally in prohibiting app store operators from mandating the use of their own payment systems. The commission found that despite technically allowing third-party payment options, both Google and Apple effectively coerced developers into using their in-house systems. This was achieved by imposing a substantial 26% commission on transactions processed through alternative payment methods, while simultaneously withholding certain features that were available to developers using the companies' native payment solutions.

The regulatory body also identified instances where Google and Apple engaged in unfair app review practices. These included delaying app reviews without providing clear explanations to developers regarding the reasons for the hold-ups or offering timelines for when the reviews would resume. Adding to these findings, the KMCC specifically accused Apple of charging South Korean developers higher commission rates compared to those imposed on developers in other regions, a practice that reportedly occurred from 2015 until January 2023. This comprehensive regulatory oversight underscores South Korea's proactive stance on app market dominance abuse.

In response to the KMCC's ruling, Apple issued a statement to The Associated Press, expressing its respectful disagreement with the decision. The company asserted that its current operational practices are in full compliance with South Korean law and indicated that it is actively evaluating its available legal options. Apple defended its in-app payment system, highlighting its role in facilitating secure transactions for users and safeguarding them against predatory tactics and fraud. The company further suggested that these critical safeguards could potentially be compromised if users were to utilize alternative payment methods.

Conversely, Google did not provide an immediate response to the request for comment regarding the KMCC's decision. This significant KMCC fines Google Apple app payment action serves as a potent reminder of South Korea's commitment to robust app store regulation, particularly concerning Google Apple in-app purchase policy and unfair app review practices. The nation was the first to enact a law in 2021 specifically designed to curb the power of app market operators, setting a precedent for global scrutiny of how major tech platforms manage their developer ecosystems and payment systems. The KMCC chairperson, Kim Jong-cheol, was pictured at a meeting at the government complex in Gwacheon, South Korea, on Wednesday, Oct. 28, 2026, in a photo provided by the commission.

Lawyers and compliance officers advising tech companies, particularly those with app stores or significant app developer ecosystems, should review their client's payment system policies and app review procedures in South Korea to ensure compliance with the 2021 law, as regulators are actively enforcing prohibitions against forced in-app payment systems and unfair review delays. This action may also signal increased scrutiny in other jurisdictions.

Source: Original reporting via The Associated Press.