South Korea hits Google and Apple with 63.7 billion won fine

Google and Apple face combined penalties of 63.7 billion won, or 47.6 million dollars, after South Korean regulators determined the companies abused their market dominance. The Korea Media and Communications Commission announced the fines on Wednesday. The agency said the tech giants forced local developers to rely on internal payment systems and unfairly held up application reviews.

The commission imposed a 42.9 billion won fine on Alphabet's Google unit. Apple received a 20.8 billion won penalty. Both companies must now allow developers to include external payment links inside their apps. They must also improve their processes for reviewing new software. The regulator spent years investigating whether the firms violated a 2021 statute designed to curb app store monopolies.

According to the commission, the companies charged developers a 26 percent commission when using third-party payment methods. They also withheld specific features that were available through the companies' own payment systems. This strategy effectively pushed developers to use the in-app systems despite the technical availability of alternatives.

The agency also cited instances where Google and Apple delayed app reviews without explaining the reasons or providing timelines for completion. Apple faced additional scrutiny for charging South Korean developers higher commission rates than developers in other regions. These higher fees applied from 2015 until January 2023.

Neither Google nor Apple immediately responded to requests for comment. South Korea became the first nation to enforce a law in 2021 that bans app store operators from requiring users to use specific payment methods. The country has maintained close oversight of foreign technology firms since that regulation took effect.