South Korea Fines Google and Apple Nearly $48 Million Over Payment Rul

South Korea Fines Google and Apple Nearly $48 Million Over Payment Rules

South Korea penalized Google and Apple nearly $48 million for unfair app store payment rules and directed them to change policies.

NationPulse Desk

Oct 29, 2026 · 7:49 PM 3 min read

Key takeaways

South Korea fined Google and Apple a combined $47.6 million for violating app store and payment laws.

Google received a fine of approximately $32 million and Apple was fined around $15.6 million.

The KMCC began investigating Google and Apple's app store practices in 2022 and announced its final decision on October 28, 2026.

Apple calculated its commission using prices that included VAT for South Korean developers, but prices before VAT for overseas developers.

Both companies have one month to submit compliance plans and three months to implement the required changes.

South Korea penalized Google and Apple a combined $47.6 million for breaking national regulations regarding app stores and payment platforms, the Korea Media and Communications Commission announced on October 28, 2026. Regulators determined that both corporations unfairly limited payment choices for developers and placed unreasonable demands on third-party payment systems.

Google received a penalty close to $32 million, while Apple faced a fine of around $15.6 million. The agency also commanded both tech giants to modify their store policies and permit broader payment selections.

Google and Apple Restricted Payment Options

The KMCC stated that Google and Apple coerced software creators into using proprietary in-app billing networks. Even though both corporations permitted specific external payment services, they levied a 26% fee on those transactions.

Investigators discovered that these services lacked certain capabilities present in the proprietary billing frameworks, such as subscription management. Furthermore, Google and Apple blocked creators from steering users toward external websites for transaction completion.

According to the KMCC, these limitations diminished the appeal of alternative billing choices and steered creators directly toward proprietary platforms. South Korea enacted legislation in 2021 banning app store operators from compelling developers to adopt specific billing setups.

App Review Delays and Unfair Charges

The agency also identified issues regarding how Google and Apple managed software assessments. The inquiry revealed that both corporations periodically postponed reviews without offering transparent explanations or details on when the procedure would restart, and they failed to adequately answer creator inquiries concerning these holds.

Apple encountered a separate violation regarding its fee structures. The KMCC found that Apple computed charges differently for South Korean creators compared to international counterparts. For domestic creators, Apple figured its fee using totals that incorporated value-added tax.

Conversely, for foreign creators, the corporation computed fees using totals prior to value-added tax. The agency concluded that this practice unfairly penalized South Korean creators.

Companies Ordered to Change Their Policies

Concluding the inquiry, the KMCC instructed Google and Apple to let creators supply links to external billing sites inside their applications. The corporations must also overhaul their fee structures and upgrade review procedures.

Google received instructions to alter guidelines for external billing, whereas Apple must drop its mandate requiring creators to upload distinct applications when providing alternative billing selections.

Apple must additionally guarantee that fee structures do not discriminate between domestic and foreign creators. Both corporations must present compliance strategies within one month of getting the directives, followed by a three-month window to carry out the mandates. The agency did not pursue criminal charges against either entity.

Apple and Google Respond

Apple contested the agency ruling, maintaining that current policies align with South Korean regulations. The corporation noted that its billing network safeguards consumers against fraud and additional hazards, and Apple is currently examining legal recourse.

Google voiced frustration as well, asserting that the agency failed to properly factor in recent initiatives to broaden billing selections and cut fees. The corporation outlined billing modifications in March, featuring initiatives to support external billing and decrease service fees. Both corporations already permit external billing selections in select alternative territories, including the United States and the European Union.

Investigation Began in 2022

The KMCC launched its inquiry into Google and Apple app store practices in 2022. The review encompassed physical inspections alongside examinations of billing guidelines, creator fees, and review protocols, culminating in the final ruling on October 28, 2026.

This marks the initial enforcement action under the 2021 South Korean legislation limiting mandatory in-app billing setups. The KMCC stated it will maintain surveillance over the software marketplace to guarantee corporate compliance and fair billing selections for creators.

Questions and answers

How much were Google and Apple fined by South Korea?

Google received a fine of approximately $32 million, and Apple was fined around $15.6 million, totaling $47.6 million.

When did the investigation into Google and Apple begin?

The Korea Media and Communications Commission began investigating Google and Apple's app store practices in 2022 and announced its final decision on October 28, 2026.