● Covered by 2 sources · 3 reportsMedium impact2 negative1 neutral
South Korea Fines Apple $15.5 Million, Orders App Store Policy Changes
Key points
- Apple fined 20.81 billion won ($15.5 million) by South Korea.
- Ordered to revise App Store payment methods and app review procedures.
- KMCC cited forced payment methods and discriminatory commissions.
- First enforcement under 2021 Telecommunications Business Act amendment.
- Google was fined 42.9 billion won ($32 million) by South Korea.
- KMCC conducted investigations and on-site inspections since 2022.
- KMCC found a 26 percent commission for third-party payments.
- Apple lowered its App Store commission in Taiwan from 30% to 26%.
- The Taiwan commission change is effective October 31.
Regulatory Action Against Apple
South Korea's Korea Media and Communications Commission (KMCC) announced fines and corrective orders against Apple and Google. Apple received a fine of 20.81 billion won, approximately $15.5 million, for violations of the country’s Telecommunications Business Act. This marks the first enforcement case under the 2021 amendment to the Act, which prohibits app market operators from certain practices.
Violations Identified
The KMCC identified three main violations by Apple. First, the company was found to have forced specific payment methods, effectively requiring developers to use its in-app payment systems with a 26% commission and restrictions on third-party alternatives. Second, Apple unfairly delayed app reviews by not providing specific reasons for delays or clear responses to inquiries. Third, Apple imposed discriminatory commissions on South Korean developers by calculating its 30% commission based on prices including VAT, while overseas developers were charged based on prices excluding VAT between July 2015 and January 2023.
Required Policy Revisions
As a result of these findings, Apple must revise its App Store policies. The company is required to allow external payment methods and address restrictions placed on developers using alternative payment systems. Additionally, Apple must revise its app review procedures to provide clearer communication regarding delays and timelines.
Impact on App Market Operators
This ruling sets a precedent under South Korea's amended Telecommunications Business Act. It mandates that app market operators like Apple and Google must ensure fair practices regarding payment methods, app review processes, and commission structures, particularly concerning local developers. The decision aims to prevent dominant platforms from unfairly leveraging their market position.
Updates
- Google was fined 42.9 billion won ($32 million) by South Korea.
- KMCC conducted investigations and on-site inspections since 2022.
- KMCC found a 26 percent commission for third-party payments.
- Apple lowered its App Store commission in Taiwan from 30% to 26%.
- The Taiwan commission change is effective October 31.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Apple has lowered its standard App Store commission rate in Taiwan from 30% to 26% for paid apps and in-app purchases, effective October 31. This change follows discussions with the Taiwan Fair Trade Commission, reflecting ongoing global regulatory pressure on Apple's App Store policies.
South Korea's communications regulator fined Apple $15.6 million and Google $32 million for violating the Telecommunications Business Act. The companies were found to have forced in-app payment methods, imposed high commissions, and delayed app reviews, and are now required to accept external payments and revise review procedures.
South Korea's Korea Media and Communications Commission (KMCC) fined Apple 20.81 billion won ($15.5 million) and ordered changes to its App Store policies. The KMCC found Apple violated the Telecommunications Business Act by forcing specific payment methods, unfairly delaying app reviews, and imposing discriminatory commissions on South Korean developers.