South Korea fines Google, Apple for pushing app developers onto their payment systems

South Korea's media and telecommunications regulator on Wednesday ordered Google and Apple to pay a combined 63.7 billion won (€42.7m) accusing them of exploiting their grip on app stores to push developers towards their own payment tools and of stalling app reviews.

The two US companies have faced similar penalties elsewhere, including in the EU.

The Korea Media and Communications Commission (KMCC) fined Google 42.9 billion won (€28.7m) and Apple 20.8 billion won (€13.9m) after an investigation that began back in August 2022.

It found that both firms had broken a 2021 law that stops app store operators from making developers use a specific payment system, a rule that South Korea was the first country in the world to put into force.

On paper, Google and Apple allowed developers to offer other payment systems inside their apps. However, they charged a 26% commission on those payments, only slightly below the 30% they charge for their own systems, and held back some features, which the commission said left developers with little real choice.

Payments through external websites were also blocked altogether.

The regulator also found that the companies held up app reviews without properly explaining the reasons to developers, or saying when the reviews would restart.

Apple was also found to have charged South Korean developers more than those elsewhere between 2015 and January 2023, as it calculated its commission on prices that included value-added tax.