Google and Apple Fined Nearly $48 Million Over App Store

South Korea has fined Google and Apple a combined $47.6 million for violating the country's laws governing app stores and payment systems.

Key points

• While Apple was fined around $15.6 million, google received a fine of approximately $32 million.
• Both Apple and Google already allow external payment options in certain other markets, including the United States and the European Union.
• The KMCC began investigating Google and Apple's app store practices in 2022.
• This is the first enforcement action under South Korea's 2021 law restricting mandatory in-app payment systems.
• South Korea passed legislation in 2021 prohibiting app store operators from forcing developers to employ specific payment systems.

In practice, the Korea Media and Communications Commission (KMCC) discovered that both businesses unfairly restricted how app developers could accept payments and imposed unreasonable conditions on alternative payment methods.

While Apple was fined around $15.6 million, google received a fine of approximately $32 million. The regulator has additionally ordered both businesses to change their app store policies and allow more payment options. Google and Apple Restricted Payment Options.

According to the KMCC, Google and Apple pressured developers to employ their own in-app payment systems. Although both firms allowed developers to apply certain third-party payment services, they charged a 26% commission on those transactions.

Meanwhile, the regulator discovered that these services additionally lacked some features available through the firms' own payment systems, including subscription management. Furthermore, Google and Apple prevented developers from directing users to external websites to complete payments.

For context, the KMCC remarked these restrictions produced alternative payment methods less attractive and effectively pushed developers toward the firms' own payment systems.

South Korea passed legislation in 2021 prohibiting app store operators from forcing developers to employ specific payment systems. Apple Creator Studio Gets Major AI Assistant Upgrades. App Review Delays and Unfair Charges.

Meanwhile, the regulator additionally identified challenges with how Google and Apple handled app reviews. According to the investigation, both firms sometimes delayed reviews without clearly explaining the reasons or providing information concerning when the process would resume. They additionally failed to properly respond to developers' questions concerning these delays.

Apple faced an extra finding over its commission policies. The KMCC discovered that Apple calculated fees differently for South Korean developers and developers from other countries. For South Korean developers, Apple calculated its commission using rates that included value-added tax (VAT).

Nevertheless, for overseas developers, the business calculated fees using rates before VAT. The regulator determined that this practice unfairly disadvantaged South Korean developers. Firms Ordered to Change Their Policies.

After its investigation, the KMCC ordered Google and Apple to allow developers to provide links to external payment websites within their apps. The firms must additionally revise their commission policies and improve their app review procedures.

While Apple must remove its requirement for developers to submit separate apps when offering alternative payment methods, google has been directed to change its guidelines for third-party payments.

Apple must additionally ensure that its commission policies do not discriminate between South Korean and overseas developers.

Both firms must submit aims explaining how they will comply within one month of receiving the orders. They will then have three months to implement the required changes. The regulator did not file criminal complaints against either firm. Apple and Google Respond.

Apple has disagreed with the regulator's decision, arguing that its existing policies comply with South Korean law.

In practice, the firm stated its payment system helps protect customers against fraud and other risks.

Apple is reviewing its legal options. Google additionally expressed disappointment, saying the regulator had not adequately considered its recent efforts to expand payment choices and reduce fees.

For context, the firm unveiled changes to its payment policies in March, including intends to backing external payments and lower service fees.

Both Apple and Google already allow external payment options in certain other markets, including the United States and the European Union. Google Cloud Outage Disrupted Banks, Courts, Businesses, and More. Investigation Began in 2022.

Notably, the KMCC began investigating Google and Apple's app store practices in 2022.

Notably, the investigation included on-site inspections and reviews of payment policies, developer fees, and app approval procedures. The regulator confirmed its final decision on October 28, 2026.

In practice, the KMCC remarked it will continue monitoring the app market to ensure that businesses comply with the rules and offer developers fairer payment options. Stay Connected with ProPakistani.

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In short, google and Apple Fined Nearly $48 Million Over App Store is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.