South Korea Penalizes Google, Apple Over App Payment Restrictions
(MENAFN) South Korea’s telecommunications regulator has imposed a combined fine of 63.7 billion won ($45 million) on Google and Apple for limiting payment choices available to app developers through their in-app billing policies, according to an announcement Wednesday.
The Korea Media and Communications Commission (KMCC) approved the penalties over breaches of the Telecommunications Business Act. It will also require both companies to implement corrective measures, while deciding against pursuing criminal complaints.
The regulator said Google and Apple exploited their dominant positions in the market by obliging developers to adopt designated payment systems and placing less favorable conditions on alternative payment providers.
The penalties follow an investigation that began with formal notices issued to both companies in October 2023, with the latest decision coming roughly three years later, according to reports.
Under the commission’s orders, both companies must enable developers to provide alternative payment options, including links directing users to external payment services within apps. They are also required to charge reasonable fees for third-party payment systems.
The Korea Media and Communications Commission (KMCC) approved the penalties over breaches of the Telecommunications Business Act. It will also require both companies to implement corrective measures, while deciding against pursuing criminal complaints.
The regulator said Google and Apple exploited their dominant positions in the market by obliging developers to adopt designated payment systems and placing less favorable conditions on alternative payment providers.
The penalties follow an investigation that began with formal notices issued to both companies in October 2023, with the latest decision coming roughly three years later, according to reports.
Under the commission’s orders, both companies must enable developers to provide alternative payment options, including links directing users to external payment services within apps. They are also required to charge reasonable fees for third-party payment systems.
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