South Korea's broadcasting and telecommunications regulator said Wednesday it will fine Google and Apple a combined 63.7 billion won ($45 million) for restricting app developers' payment options through their in-app payment policies.
The Korea Media and Communications Commission (KMCC) approved the fines, citing violations of the Telecommunications Business Act. The regulator will also issue corrective orders but will not file criminal complaints against the two companies.
According to the KMCC, both companies abused their dominant market positions by requiring developers to use specific payment methods and imposing unfavorable conditions on third-party payment options.
The decision comes about three years after the regulator first notified Google and Apple of the alleged violations in October 2023, according to South Korea's Yonhap News.
The commission ordered both companies to allow developers to offer alternative payment methods, including external payment links within apps, and set reasonable fees for third-party payment systems.
Google must revise its guidelines for third-party payments, while Apple must remove its requirement for developers to submit separate apps when offering alternative payment options.
"A fair and sustainable app market ecosystem can be achieved through a cooperative and mutually beneficial relationship between app market operators and developers," KMCC Chairman Kim Jong-cheol said.
Both companies must submit compliance plans within one month of receiving the corrective orders and implement the required changes within three months.
Google expressed regret over the decision, arguing that the commission had overlooked recent policy changes designed to expand payment options for developers and reduce commission fees.
Apple also disagreed with the ruling, pointing out that more than 90% of revenue generated through its App Store ecosystem was returned to developers last year.
"Apple believes that the changes it has implemented to date comply with the Telecommunications Business Act," the company said. "We are reviewing our next steps based on Korean law."
