Seoul regulators slash Google and Apple with $47.6 million in fines

South Korea imposed a combined fine of 63.7 billion won, or $47.6 million, on Alphabet’s Google and Apple on Wednesday. The Korea Media and Communications Commission determined that both companies abused their dominance in app store markets. Regulators found the firms forced local developers to use specific payment systems and unfairly delayed app reviews.

The investigation targeted violations of a 2021 law that prevents app store operators from mandating specific payment methods. The commission fined Google 42.9 billion won ($32 million) and Apple 20.8 billion won ($15.5 million). Both companies must now allow South Korean developers to use external payment links within their apps. Regulators also ordered improvements to app review procedures.

The commission stated that Google and Apple pushed developers toward their own in-app payment systems while barring payments through external websites. Although the companies technically allowed third-party payment systems, they charged developers a 26% commission. The regulators noted that the firms withheld features available only through their own systems. This structure effectively forced developers to rely on the internal payment options.

Apple faced additional penalties for charging South Korean developers higher commissions than developers in other regions. The commission identified this disparity as occurring from 2015 through January 2023. Regulators also cited instances where both companies delayed app reviews without clearly explaining the reasons or providing timelines for when reviews would resume.

South Korea enacted its 2021 law to become the first country to enforce rules against app market operators requiring users to use internal payment systems. The regulator spent years investigating the U.S. tech giants for these alleged violations. Neither Google nor Apple immediately responded to requests for comment regarding the new fines and orders.