South Korea fines Google and Apple 63.7 billion won over in-app payments

South Korea has imposed a fine totaling 63.7 billion won on both Google and Apple concerning in-app payments.

This decision may establish a precedent influencing worldwide app marketplace practices, potentially altering developer-platform dynamics globally.

The penalties conclude a probe that commenced in August 2022 regarding rules mandating developers use the tech giants' own payment systems.

The Korea Media and Communications Commission (KMCC), the nation's media and telecommunications regulator, was set to finalize the ruling on October 28, 2026.

Google is assessed the larger portion of the penalty, amounting to roughly 42.9 billion won, while Apple's share is about 20.8 billion won.

These figures represent a change from preliminary numbers floated in October 2023, which placed Google at 47.5 billion won and Apple at 20.5 billion won.

The central accusation is that both corporations compelled developers to utilize their proprietary payment methods instead of allowing free selection of alternatives.

The investigation determined that both companies charged effective fees near 26% for third-party payment options, contrasting with the platforms' prior 30% standard.

The legal basis for this action is a 2021 amendment to South Korea's Telecommunications Business Act, which became effective in March 2022.

Regulators initiated their inquiry in August 2022, shortly after the new regulations took effect, and a preliminary sanctions notice was issued in October 2023.

The ruling's implications might extend beyond South Korea, potentially affecting how global platforms manage competition within app marketplaces.