Regulatory authorities are also mandating changes in their operational methods.
The Korea Communications Commission has determined that both Apple and Google have breached the nation’s Telecommunications Business Act. Consequently, they have been fined and instructed to amend their business practices concerning their respective app stores. Google faces a fine of KRW 42.9 billion (around $32 million), whereas Apple is required to pay KRW 20.81 billion (approximately $15.6 million).
Since 2022, the Korea Media and Communications Commission (KMCC) has carried out investigations and inspections to uncover the nature of the violations. Their findings revealed that both companies have transgressed regulations pertaining to the app marketplace, such as mandating users to utilize their in-app payment systems, applying a hefty 26 percent commission on third-party payments, and prohibiting external payment alternatives.
The KMCC also noted that both companies unjustifiably delayed app reviews without proper explanations, failing to address individual requests regarding these delays. Additionally, it was discovered that Apple used different commission calculations for South Korean developers compared to international ones, using VAT-inclusive pricing for domestic developers and pre-VAT pricing for those based abroad.
In light of these findings, the KMCC has mandated that both companies begin accepting external payment methods and revise their app review processes. Apple is also directed to eliminate any bias against domestic app developers in comparison to their international counterparts. Notably, both companies have already implemented external payment options in markets such as the US and the EU.
