Apple and Google Fined in South Korea Over App Store Violations

Apple and Google have been fined by South Korea's communications regulator over app store violations, and both companies have been ordered to change related business practices. Google was fined KRW 42.9 billion, or $32 million, while Apple was fined KRW 20.81 billion, or $15.6 million. The Korea Media and Communications Commission said it found violations after investigations and on-site inspections that began in 2022.

Fines and violations

The regulator said the companies violated rules for the app market sector. Those violations included forcing users to use their in-app payment methods, imposing a 26 percent commission for third-party payments, and prohibiting external payments. The regulator also said the companies delayed app reviews without providing a clear reason and did not respond to individual inquiries about the delays.

Apple commission finding

The regulator found that Apple computed commissions differently for South Korean and overseas developers. For Korean developers, Apple based its cut on the price of purchases including VAT. For developers from outside the country, it based the cut on pre-VAT prices.

Required changes

As a result of the findings, the Korea Media and Communications Commission is requiring the companies to accept external payments and to revise their app review procedures. Apple is also required to prevent discrimination between domestic and overseas app developers. The companies already allow external payments in the United States and the European Union.

Sources: Engadget