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S. Korea Orders Google, Apple to Allow External Payments
28 Oct
Summary
- Google and Apple fined billions of won in South Korea.
- Companies must allow external payment links in apps.
- Compliance plans are due within one month.
South Korea's Korea Communications Commission has imposed substantial fines on Google and Apple, totaling 63.7 billion won, for alleged misuse of their dominant positions in the app market. The commission found that both companies coerced domestic developers into using their proprietary billing systems and imposed delays on app approvals without adequate justification. Google was fined 42.9 billion won, and Apple received a fine of about 20.8 billion won.
Both tech giants are now mandated to allow developers to integrate external payment links within their applications. Additionally, they must set fair fees for third-party billing and revise their app review processes. Google must update its guidelines for third-party payments, while Apple must remove its requirement for a standalone app for alternative payment methods. Companies have one month to submit compliance plans and three months to implement these changes.
The ruling stems from a 2021 law preventing app store operators from dictating payment methods. This action follows an initial notification to the companies in October 2023 that they might have violated regulations. The commission stated it does not plan to pursue criminal complaints, focusing instead on fostering a cooperative app market ecosystem.
