South Korean regulator fines Google and Apple 63.71 billion won over in-app payments
In short
South Korea's Broadcasting Media and Communications Commission voted on 28 October to fine Google 42.9 billion won and Apple 20.81 billion won, 63.71 billion won in total, for forcing their own payment methods on app developers. It also issued correction orders and decided not to file criminal complaints. Apple said it disagrees and is reviewing its response.
Read the full story 3 min read
South Korea's Broadcasting Media and Communications Commission (방송미디어통신위원회) held its 46th plenary meeting on 28 October at the Government Complex Gwacheon. It voted to fine Google 42.9 billion won and Apple 20.81 billion won, a total of 63.71 billion won, for violating the Telecommunications Business Act, and to issue correction orders. The commission also decided not to file criminal complaints against either company. [ 5 , 7 , 9 , 13 , 20 ]
The commission said Google and Apple changed their terms to allow only their own in-app payment and third-party payment offered by developers, and effectively blocked external payment. They charged a 26% fee on third-party payment, against 30% on their own payment. Developers also had to cover payment-agency fees and system costs, so the commission judged there was little reason to choose third-party payment. Google limited price display by payment method, and Apple required developers to submit a separate app to use third-party payment. Both companies were also found to have given no specific reasons or schedule when app reviews were delayed. [ 7 , 12 , 13 , 14 , 26 ]
Apple was also found to have applied different fee bases. From July 2015 to January 2023 it charged overseas developers 30% of sales excluding VAT and domestic developers 30% of sales including VAT. Seoul Economic Daily reported that Apple attributed this to a change in VAT law, that the commission judged the same basis could have been used, and that Apple's extra gain was estimated at about 149.6 billion won. The same outlet said the fines were raised 20% because both companies did not correct the forced payment practice during the investigation, and that Apple's fine was cut 20% for voluntarily correcting the fee difference. [ 7 , 12 , 13 ]
The correction orders require both companies to stop the violations, improve payment policy and review procedures, announce the correction order, and submit an implementation plan and report on results. Developers must be allowed to place links to external payment pages in their apps, and Apple must prevent fee discrimination from recurring. The order does not set whether fees may be charged on external link payments or how much. CBS NoCut News reported the commission said at a briefing that it had not regulated this. Kyunghyang Shinmun said the timing of external payment has not been set. Seoul Economic Daily said the written resolution would be sent to the companies in November. [ 5 , 7 , 13 , 16 , 26 ]
Commission chair Kim Jong-cheol expressed regret that the decision took more than three years, according to Kyunghyang Shinmun and Korea Economic Daily, and said he hoped it would help protect developers and users. Apple said it regretted the decision and disagreed with it, and that it is considering its response under Korean law. Chosun Ilbo reported that both companies said they find it hard to agree with the decision. [ 7 , 9 , 34 ]
The commission's predecessor began a fact-finding probe in August 2022 and in October 2023 gave notice of fines of 47.5 billion won for Google and 20.5 billion won for Apple, 68 billion won in total. Outlets said the decision was delayed by problems with the commission's operation, and a revised plan in March 2025 set the fines at 63 billion won. On 27 October, before the vote, Yonhap reported a split over whether the order should include external payment guidance, and the commission said no decision had been finalised. [ 1 , 2 , 4 , 21 ]
Why it matters
Several outlets describe this as the first sanction under the 2021 law banning forced in-app payment. Outlets note the order does not settle whether fees can be charged on external link payments, so how much it will cut developers' costs is not yet clear.
Key facts
- The commission held its 46th plenary meeting on 28 October at the Government Complex Gwacheon and voted to fine Google 42.9 billion won and Apple 20.81 billion won, a total of 63.71 billion won. [ 5 , 7 , 9 , 13 , 14 , 20 ]
- The commission found that Google and Apple forced a specific payment method, unjustly delayed app reviews, and that Apple charged domestic and overseas developers differently. [ 5 , 7 , 12 , 21 ]
- Both companies charged a 26% fee on third-party payments, against 30% on their own in-app payment. [ 7 , 12 , 16 , 26 ]
- The commission ordered both companies to stop the violations, improve payment policy and review procedures, and allow in-app links to external payment pages. [ 5 , 7 , 14 , 16 ]
- It decided not to file criminal complaints against either company. [ 5 , 7 , 9 , 13 , 14 , 20 ]
- The case began with a fact-finding probe in August 2022 and a notice of fines of up to 68 billion won in October 2023. [ 2 , 3 , 4 , 21 ]
Confirmed by several sources
- The commission fined Google 42.9 billion won and Apple 20.81 billion won, 63.71 billion won in total, and issued correction orders. [ 5 , 7 , 9 , 10 , 12 , 13 , 14 , 20 , 21 ]
- No criminal complaint will be filed against either company. [ 5 , 7 , 9 , 13 , 14 , 20 ]
- The commission said both companies allowed only their own in-app payment and developer-provided third-party payment, charged 26% on third-party payment, and gave unclear reasons for review delays. Google limited price display by payment method and Apple required a separate app submission for third-party payment. [ 7 , 12 , 13 , 14 , 26 ]
- Apple applied 30% to overseas developers' sales excluding VAT and to domestic developers' sales including VAT from July 2015 to January 2023. [ 7 , 12 , 13 , 14 ]
- Apple and Google both expressed regret over the decision, and Apple said it disagrees with it. [ 7 , 25 , 34 ]
Still unclear
- Whether the companies may charge fees on payments made through external links, and at what level. The order does not cover it. Kyunghyang Shinmun and CBS NoCut News say so, and CBS reports the commission said at a briefing it had not regulated this and needed to see the companies' policy direction.
- When external payment will actually be allowed. Kyunghyang Shinmun says the timing has not been set.
- The deadline for the companies' improvements. Kyunghyang Shinmun says the plan is due within one month of the resolution being sent and process improvements will be discussed within three months. Maeil Business says the plan is due within one month and service improvements must be completed within three months.
- Whether the fine is an adequate penalty. An Asia Economy summary says the fine is large among Korean platform rules but is being compared with overseas fines in the thousands of billions of won, raising doubts about its effectiveness. Only a summary is available.
- What Google specifically said in response. A Chosun Ilbo summary says both companies said they find it hard to agree with the decision, but gives no details for Google.
What local media are saying
Timeline, local time
- On 27 October Yonhap reports the commission is leaning toward fines of 42.9 billion won for Google and 20.8 billion won for Apple, with disagreement over the correction order. [ 1 ]
- On 27 October the commission says the fines and sanctions are not final and have not been voted on; whether the item goes on the 28 October agenda is to be decided that afternoon. [ 4 ]
- On 28 October Newsis and Yonhap report that the commission decided on fines of 42.9 billion won for Google and 20.81 billion won for Apple. [ 5 , 6 ]
- On 28 October Yonhap reports that both companies expressed regret and are considering a response. [ 25 ]
- On 29 October Asia Economy reports debate over whether the fine is effective. [ 33 ]