Apple fined $15.5 million as South Korea orders changes to App Store rules

Apple and Google were fined today in South Korea over their app payment practices, with regulators also ordering both companies to change several policies. Here are the details. Apple’s App Store woes keep mounting South Korea’s Korea Media and Communications Commission (KMCC) announced today a series of fines and corrective orders against Apple and Google over violations of the country’s Telecommunications Business Act. Specifically for Apple, the KMCC imposed a fine of 20.81 billion won (approximately $15.5 million) and ordered the company to revise its App Store policies regarding payment methods and app review procedures, as well as prevent what it referred to as “discriminatory commission” practices from recurring. In its announcement, the KMCC noted: This is the first enforcement case under the 2021 amendment to the Telecommunications Business Act, which introduced prohibited acts for app market operators, such as forcing specific payment methods and unfairly delaying app reviews. In essence, the decision centers around three violations: forcing specific payment methods, unfairly delaying app reviews, and imposing discriminatory commissions. On the payment methods front, the KMCC said Apple and Google “effectively forced” developers to use their own in-app payment systems by imposing a 26% commission and additional restrictions on third-party alternatives. “This constitutes an act in which an app market operator unfairly uses its position in transactions to force mobile content providers and others to use a specific payment method,” the KMCC said. As a result, Apple and Google must revise their policies to allow external payment methods and address restrictions imposed on developers using alternative payment systems. As for the app review process, the KMCC found that Apple and Google “delayed app reviews, for example by not providing specific reasons when reviews were delayed or not clearly responding to individual inquiries about the reasons for delays and expected timelines.” Accordingly, Apple and Google must revise their app review procedures to address these issues. Finally, on the discriminatory commissions, which applied only to Apple, the KMCC found that between July 2015 and January 2023, the company calculated its 30% commission differently for South Korean and overseas developers. While overseas developers were charged based on prices excluding value-added tax (VAT), South Korean developers were charged based on prices including VAT. “KMCC determined that this constituted an act of unfairly providing rates, numbers, telecommunications facilities, or other economic benefits for telecommunications services or bundled services in a discriminatory manner compared to other users […].” The KMCC said Apple will also have to take measures to prevent discriminatory commission practices between South Korean and overseas developers from recurring. According to Reuters, Apple said it “‌disagreed ⁠with the decision and was evaluating options in accordance with South Korean ​laws.” ​Apple added that “⁠it has worked with outside developers ​to enable innovation ​through ⁠its App Store.” Today’s decision comes on the heels of similar regulatory pressure in other markets, including Brazil and Japan, where Apple has introduced alternative app distribution and payment options in response to local competition rules. The company has also faced years of scrutiny in the European Union, where it recently overhauled its App Store fees and business terms to address concerns raised by the European Commission. To read the KMCC’s full announcement, follow this link. Worth checking out on Amazon Apple Watch Series 12 | Ultra 4 Apple HomeView Apple TV 4K (2026) AirPods Pro 3 | AirPods 5 AirTag (2nd Generation) – 4 Pack MacBook Neo Logitech MX Master 4 FTC: We use income earning auto affiliate links. More.