South Korea has imposed a combined 63.7 billion won (approximately $45 million) in fines on Apple and Google over their app store payment policies, accusing the two technology giants of restricting developers’ payment options and engaging in other unfair business practices.
The Korea Media and Communications Commission announced the decision on October 28, 2026, imposing a fine of 42.9 billion won on Google and 20.81 billion won on Apple. The regulator also ordered both companies to change their business practices and improve their app review procedures.
The decision follows a years-long investigation into how the companies manage payments and app distribution in South Korea. Source: Yonhap News Agency
Why South Korea Fined Apple and Google
The regulator found that Apple and Google had effectively pressured app developers to use payment systems provided by their respective app stores.
Both companies allowed certain third-party payment options but imposed conditions that the regulator said made alternatives less attractive or harder to use. These included charging developers a 26% commission for third-party payment systems and withholding some features available through their own payment services.
The commission also found problems with app review procedures, including delays that were not adequately explained to developers. Apple faced an additional finding involving differences in commission arrangements for Korean and overseas developers.
The regulator concluded that these practices violated South Korea’s Telecommunications Business Act, which includes rules intended to prevent app market operators from forcing developers to use particular payment methods.
What the New Rules Require
Under the corrective orders, Apple and Google must allow developers to offer alternative payment methods, including links to external payment options, and revise policies that restrict developers’ choices.
The companies must also improve their app review procedures. Google was instructed to revise its guidelines for third-party payments, while Apple was ordered to remove a requirement that developers submit separate apps when introducing alternative payment options.
According to the commission, the companies must submit plans for complying with the orders within one month of receiving them and implement the required changes within three months.
The regulator decided not to file criminal complaints against either company as part of this action.
How Apple and Google Responded
Apple said it disagreed with the decision and was evaluating its options under South Korean law. The company has argued that its App Store payment system supports secure transactions and protects users from fraud.
Google expressed regret over the decision, saying the regulator had not adequately considered recent policy changes designed to give developers more payment options and reduce service fees.
In March 2026, Google announced changes to its payment policies, including plans to permit external payment options and lower certain service fees. The South Korean regulator said it would continue monitoring the implementation of the companies’ revised policies.
The fines therefore do not end the dispute over how app stores should manage payments. The companies’ compliance with the corrective orders, along with any further legal challenges, will be important developments to watch.
Could This Affect App Prices?
The outcome could matter to app developers and consumers, but the effect on prices is not yet clear.
If developers gain more freedom to use external payment systems, they may have additional options for managing transaction costs. However, savings for developers would not automatically translate into lower prices for consumers. Payment providers may still charge fees, and individual companies would decide whether to pass any savings on to customers.
The case also highlights a wider international debate over the power of major app store operators. Governments and regulators in several markets have examined whether platform owners should be allowed to control how digital purchases are made within apps.
South Korea’s decision adds another chapter to that debate, placing the business practices of two of the world’s largest technology companies under renewed scrutiny.
Source: Yonhap News Agency — Communications watchdog fines Google, Apple over in-app payment policies
Additional Sources: Reuters; Korea Media and Communications Commission via Korea.net
Category: Business
Published: October 29, 2026