Do Son 
South Korean regulators recently penalized Apple and Google with substantial monetary sanctions. Specifically, the Korea Communications Commission issued combined penalties totaling 63.71 billion won, or roughly 48 million dollars. Regulators determined that both technology giants coerced software developers into using proprietary billing architectures. Furthermore, the regulatory agency ordered both corporations to overhaul their restrictive payment and app review practices immediately.
Excessive Commissions Undermine Alternative Payment Systems
South Korea amended its Telecommunications Business Act in 2021 to prevent marketplace monopolies. Consequently, this landmark statute explicitly prohibited app store operators from mandating exclusive payment gateways. However, ongoing investigations revealed persistent corporate resistance to these fair competition mandates.
Although both firms eventually permitted third-party payment gateways, they imposed alternative commissions reaching 26 percent. Additionally, developers had to absorb external payment processing fees on their own. Therefore, total transaction expenses frequently exceeded the traditional 30 percent in-app purchase fee. Ultimately, regulators concluded that these onerous fee structures effectively stifled genuine marketplace competition.
Discriminatory Practices and Unfair Review Delays
Regulatory inquiries also exposed systemic discrimination against alternative systems. For example, Google prohibited software creators from displaying competing pricing structures within their applications. Meanwhile, Apple mandated separate application binaries whenever developers integrated alternative billing options. Furthermore, both corporations imposed unexplained review delays that disrupted application update schedules.
Unfair Value-Added Tax Calculations Penalized Domestic Developers
Moreover, investigators identified flagrant financial disparities in Apple commission accounting. Between July 2015 and January 2023, Apple calculated fees on gross prices including tax for domestic Korean studios. In contrast, overseas software developers enjoyed commission calculations excluding value-added taxes entirely. Consequently, local Korean engineering teams shouldered an unequal economic burden for nearly eight years.
Enforcement Mandates and Divergent Corporate Responses
Regulators granted both technology firms a strict three-month timeline to execute comprehensive policy reforms. According to a Reuters report on South Korea app store penalties, both corporations must lower third-party payment commissions reasonably. Furthermore, providers must allow developers to link out to external websites and provide clear timelines for pending application audits.
Google previously signaled willingness to accommodate local rules by lowering certain service fees. Currently, regional authorities are reviewing Google implementation measures to verify compliance. Conversely, Apple released a formal statement challenging the regulatory sanction. Ultimately, Apple announced that it is evaluating legal remedies under South Korean law.
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