South Korean regulators penalize Apple and Google over mobile app billing and review practices

South Korea's Korea Media and Communications Commission has penalized Google and Apple for breaching the country's Telecommunications Business Act. The regulator fined Google KRW 42.9 billion ($32 million), while Apple faces a penalty of 20.81 billion won (valued between $15.5 million and $15.6 million). Both firms were directed to overhaul their app marketplace operations, marking the initial enforcement action under South Korea's 2021 amended telecom legislation. [1][2]

Investigators concluded that both companies effectively coerced developers into using proprietary billing systems by levying a 26 percent commission and blocking or severely restricting outside payment options. Regulators also faulted the platforms for stalling app reviews without justification or answers. Apple drew an additional penalty for calculating its 30 percent commission on post-VAT totals for domestic creators while excluding VAT for international developers between July 2015 and January 2023. [1][2]

Under the corrective orders, both companies must revise their evaluation timelines and open their platforms to external billing systems. Apple stated through Reuters that it disagrees with the ruling and is assessing its legal options under South Korean regulations. The measures arrive amid parallel regulatory challenges worldwide, with both platforms already offering outside payment routes across the United States and the European Union. [1][2]