South Korea's broadcasting and telecommunications regulator said Wednesday it will impose a combined 63.7 billion won ($45 million) worth of fines on Google and Apple for restricting app developers' payment options through their in-app policies.
The Korea Media and Communications Commission approved fines of 42.9 billion won for Google and 20.81 billion won for Apple for violating the Telecommunications Business Act over their app store payment policies.
The commission said it will also issue corrective orders but will not file criminal complaints against the two US companies.
The KMCC said Google and Apple had abused their dominant positions by forcing app developers to use specific payment methods and imposed unfavorable conditions on third-party payment options.
The decision comes about three years after South Korea's regulator first notified Google and Apple of the alleged violations in October 2023.
The KMCC ordered the two companies to allow app developers to offer alternative payment methods, including external payment links within apps, and to adjust fees for third-party payment systems to reasonable levels.
Google was ordered to revise its user experience guidelines for third-party payments, while Apple was told to scrap its requirement for developers to submit separate apps when offering alternative payment options.
"A fair and sustainable app market ecosystem can be achieved through a cooperative and mutually beneficial relationship between app market operators and developers," KMCC Chairman Kim Jong-cheol said.
The two companies must submit compliance plans within one month of receiving the corrective orders and implement the required changes within three months.
In response, Google expressed regret, saying the commission had not taken into account its recent policy changes aimed at giving app developers more payment options and reducing commission fees.
In March, Google announced plans to allow external payment options and lower service fees. (Yonhap)
