Full Breakdown
South Korea Announces Fines for Google and Apple Over Forced In-App Payments
By Drooid · · How we work
In this breakdown
01
Core Event
On October 28, 2026, the Korea Media and Communications Commission (KMCC) fined Alphabet’s Google and Apple a combined 63.7 billion won (? $47.6 million) for violating the Telecommunications Business Act. The penalties are 42.9 billion won for Google and 20.8 billion won for Apple. The regulator also ordered the companies to allow external payment links in apps and to revise their app-review procedures.
02
Background & Context
South Korea amended the Telecommunications Business Act in 2021 to ban app-store operators from forcing developers to use proprietary in-app payment systems. The KMCC began investigations in 2022 and notified Google and Apple of proposed sanctions in October 2023. Finalizing the penalties was delayed by vacancies within the predecessor Korea Communications Commission (KCC).
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03
Data & Statistics
- Fines: Google 42.9 billion won; Apple 20.8 billion won (total 63.7 billion won).
- Commission rates: Both firms charge a 26 % commission on third-party payment transactions, versus up to 30 % on their own in-app systems.
- Apple’s discriminatory practice: A 30 % commission on domestic developers’ final price (including VAT) versus supply-price commissions for foreign developers, yielding an estimated extra profit of about 149.6 billion won for Apple.
04
Official Statements & Responses
- KMCC Chairperson Kim Jong-cheol said the sanctions protect developers’ rights and enforce the anti-in-app-payment law.
- Google expressed regret, arguing that recent policy changes already expand payment options and lower fees, and that the regulator had overlooked these reforms.
- Apple noted that most of the revenue generated by its App Store ecosystem is returned to developers and that its voluntary measures comply with the law. Both firms will review the written decision.
05
Criticism & Opposition
Prof. Lee of Korea University warned that the sanctions could spark a new trade dispute, stating that “Korea was the first country to introduce a ban on mandatory in-app payments, and U.S. companies are the first to face sanctions under the law.”
06
Conflicting Reports & Gaps
- Fine amounts appear as 20.8 billion won, 20.81 billion won, and 20.81 billion won in various outlets; the KMCC’s official figure is 20.8 billion won.
- The regulator ordered improvements to third-party payment fees but did not set a specific ceiling, leaving the ultimate cost to developers uncertain.
07
Verbatim Quotes
- “A fair and sustainable app market ecosystem can be achieved through a cooperative and mutually beneficial relationship between app market operators and developers,” — KMCC Chairperson Kim Jong-cheol
- “We will carefully review the written decision once we receive it and decide how to respond.” — Apple
08
What’s Next
Both firms must submit implementation plans within one month of receiving the corrective orders and complete the required changes within three months. The KMCC will monitor compliance and may issue further directives if the reforms are not fully realized.
