By Basant El-Faramawy
South Korea's media regulator fined Google and Apple a combined $47.6 million on Wednesday for abusing their dominance in the app store market.
The Korea Media and Communications Commission imposed fines of 42.9 billion won ($32 million) on Google and 20.8 billion won ($15.5 million) on Apple after a years-long investigation into violations of a 2021 law that bars app store operators from forcing developers to use specific payment systems.
Regulator orders changes
The commission ordered both companies to allow South Korean developers to use external payment links within their apps and to improve their app review procedures.
Unfair payment practices
The regulator found that Google and Apple pushed developers toward their own in-app payment systems while blocking payments through external websites. Although they technically allowed third-party payment systems, they charged a 26% commission and withheld features available through their own systems, effectively forcing developers to use only their in-app payment systems.
The commission also cited instances where the companies delayed app reviews without clearly explaining the reasons or when reviews would resume. It also accused Apple of charging South Korean developers higher commissions than developers elsewhere from 2015 to January 2023.
South Korea has closely scrutinized foreign technology companies for years. In 2021, it became the first country to enforce a law prohibiting app market operators from requiring users to use their own in-app payment systems.
