South Korea Fines Apple and Google Over App Store Policies

The South Korea Media and Communications Commission (KMCC) has taken strict action against Apple and Google. The regulator ruled that both tech giants violated the country’s Telecommunications Business Act. In Apple’s case, the fine amounted to 20.81 billion won, or approximately $15.5 million USD.

The nature of the violations and regulatory demands

The commission concluded that the companies forced developers to use only their internal payment systems for in-app transactions. The KMCC characterized this as an unfair abuse of their dominant market position. Furthermore, the regulator identified issues within the app review process. Apple and Google frequently delayed app approvals without providing developers with clear explanations or information regarding expected wait times.

Apple faced additional scrutiny regarding its discriminatory commission policy. Between 2015 and 2023, the company treated domestic and foreign developers differently: it calculated commissions for local developers including value-added tax (VAT), while excluding it for foreign developers. The regulator deemed this practice discriminatory and ordered Apple to rectify it.

Global context and Apple's position

This marks the first time that amendments to the 2021 Telecommunications Act have been enforced. The law aims to prevent app market operators from forcing specific payment methods or artificially delaying the app review process. Apple stated that it disagrees with the regulator's decision and is currently reviewing its legal options. The company maintains that it has always worked with developers to foster innovation.

Similar pressure on Apple is visible in other regions. In response to comparable regulations, the company has already changed its app distribution and payment rules in Japan and Brazil. Additionally, amid a long-running antitrust investigation in the European Union, Apple has been forced to reconsider its commission policies for the European market.

What this means for users

For users in Georgia who rely on the Apple ecosystem, these changes may not be immediately visible. However, in the long term, it suggests a more flexible environment for developers. As alternative payment methods and more transparent review processes become established in the App Store, access to applications and services may become simpler and more diverse. The South Korean precedent highlights a global trend where governments are increasingly active in attempting to open the closed ecosystems of tech giants.