South Korea Fines Google and Apple Over Forced In-App Payments

October 28 — According to the Korean outlet Korea JoongAng Daily today, South Korea’s Korea Media and Communications Commission (KMCC) plans to fine Google and Apple a combined 63.7 billion won (about 321 million yuan) for forcing developers to use their in-app payment systems.

Multiple sources say the KMCC held a plenary meeting today, approved the corrective orders and fined Google 42.9 billion won (about 216 million yuan) and Apple 20.8 billion won (about 105 million yuan) for violating the Telecommunications Business Act. “There was no disagreement among the parties,” one official said.

In-app payment here means that developers must process purchases inside apps through Apple’s or Google’s own payment systems rather than through systems they run themselves.

Depending on developers’ revenue, the two companies charge commissions of up to 30%, which has angered developers who consider the fees too high.

In 2021 South Korea amended the Telecommunications Business Act, becoming the first country to legislate against mandatory in-app payment. Under the law, regulators can fine non-compliant app store operators up to 3% of relevant revenue.

After the amendment, Google changed its policy to allow third-party in-app payment systems. Critics argue, however, that the change has not helped much in practice, because developers using external payment systems still bear extra costs, including fees paid to local Korean payment gateways.

In October 2023, the Korea Communications Commission (KCC, the KMCC’s predecessor) announced that it would fine Google 42 billion won (about 212 million yuan) and Apple 21 billion won (about 106 million yuan) under the law. It also summoned representatives of both companies’ headquarters to hear their views.