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South Korea fines Google and Apple over in-app payment rules
South Korea's media regulator on Wednesday fined Google and Apple a combined 63.7 billion won for restricting developers' payment options, Yonhap and The Korea Herald reported.
- ClickOrlando, KSAT and 3 more are now reporting this
- New headline Was: “South Korea media commission fines Google and Apple over app payment systems”
- Our desk filed its story
- Now breaking news
Wire reporting: (AP, via ClickOrlando), (Reuters, via CNA)
South Korea's Korea Media and Communications Commission on Wednesday fined Google 42.9 billion won and Apple 20.81 billion won for restricting how app developers collect payments, The Korea Herald and Yonhap reported5,6.
The combined penalty is 63.71 billion won, which The Korea Herald put at $47.6 million and Yonhap at $45 million5,6.
The commission said the companies abused dominant positions in app stores by pushing developers onto their own billing systems and by delaying reviews, in the first sanctions under a 2021 amendment to the Telecommunications Business Act that bars forcing a specific payment method5,6.
Both firms technically allowed third-party billing but kept fees and rules that made alternatives unattractive, The Korea Herald reported, including a 26 percent commission on top of developers' own processing costs5.
Google limited how developers could display prices across payment methods, and Apple required separate app submissions for third-party billing, according to The Korea Herald5.
Yonhap said the regulator ordered the companies to let developers offer alternative payments, including external links in apps, and to set third-party fees at reasonable levels6.
Google must revise user-experience rules for third-party payments, and Apple must drop the separate-app requirement, Yonhap reported6.
The companies have one month after receiving the orders to submit compliance plans and three months to make the changes, Yonhap said6.
The commission will not file criminal complaints, Yonhap reported6.
KMCC Chairman Kim Jong-cheol said, "A fair and sustainable app market ecosystem can be achieved through a cooperative and mutually beneficial relationship between app market operators and developers," according to Yonhap6.
Google expressed regret and said the commission had not accounted for recent policy changes that expand payment options and cut fees, Yonhap reported; CNA, carrying Reuters, said Google did not immediately comment6,3.
Apple said it disagreed with the decision and is reviewing next steps under Korean law, Yonhap reported, adding that it believes changes already made comply with the act6,3.
Sources
- (AP, via ClickOrlando)South Korea fines Google and Apple over unfair app market practicesAlso (AP, via KSAT)
- (Reuters, via CNA)South Korea media commission fines Google and Apple over app payment systems
- ReutersSouth Korea media commission fines Google and Apple over app payment systems
- The Korea HeraldGoogle, Apple hit with W63.7b fine in Korea's app store crackdown
- Yonhap(2nd LD) Communications watchdog fines Google, Apple over in-app payment policies
How it’s being reported
4 sourcesFirst reported by
The Korea Herald
Google, Apple hit with W63.7b fine in Korea's app store crackdown
26 percent third-party fees and review delays
First sanctions under the 2021 law after a process that lasted more than three years.
Leaves out Apple's on-record quote
(2nd LD) Communications watchdog fines Google, Apple over in-app payment policies
Orders, deadlines, and company replies
Corrective orders without criminal complaints, plus Google and Apple responses.
Leaves out The 26 percent commission figure highlighted by The Korea Herald
South Korea fines Google and Apple over unfair app market practices
Gives this outlet’s account of the story.
Same copy also at: (AP, via KSAT)
South Korea media commission fines Google and Apple over app payment systems
Gives this outlet’s account of the story.
Same copy also at: Reuters
Where they agree
- KMCC fined Google 42.9 billion won and Apple about 20.8 billion won on Wednesday.
- The case concerns in-app payment restrictions under South Korea's Telecommunications Business Act.
Where they differ
Google's response
Dollar equivalent of the combined fine