Digital platform dominance faces a new regulatory challenge.
SEOUL, SOUTH KOREA
South Korea has imposed combined fines of 63.7 billion won, approximately $47 million, on Google and Apple for restricting payment options and imposing unfair conditions on application developers. The decision represents a significant enforcement action against two of the world’s most influential technology companies and reinforces a growing international effort to challenge the commercial power of dominant digital platforms.
The Korea Media and Communications Commission (KMCC) ordered Google to pay 42.9 billion won and Apple 20.81 billion won after concluding that their practices violated the country’s Telecommunications Business Act. The decision followed an investigation launched in 2022 into payment restrictions, application review procedures and the commercial conditions governing access to their digital marketplaces.
At the center of the dispute is the ability of developers to choose how customers pay for digital products and services. South Korea became the first country to prohibit major app store operators from requiring developers to use a particular payment system in 2021. The legislation was intended to reduce dependence on platform-controlled transactions and expand competition among payment providers.
Regulators found that although Google and Apple formally allowed certain alternative payment arrangements, their commercial conditions substantially limited developers’ freedom. Both companies imposed commissions reaching 26% on transactions processed through third-party payment systems, only slightly below the 30% typically associated with their proprietary arrangements. The regulator concluded that such fees weakened the practical benefits of offering alternative payment methods.
The investigation also identified restrictions preventing developers from directing customers to external websites to complete purchases. According to the KMCC, these limitations reduced commercial flexibility and restricted opportunities for businesses to develop independent payment relationships with their customers.
Additional findings concerned application review procedures. Regulators determined that both companies had delayed app reviews without adequately explaining the reasons or communicating when the processes would resume. Such practices can create significant uncertainty for developers whose revenue depends on timely product releases, updates and access to digital distribution channels.
Apple faced a separate finding involving commission calculations. Between 2015 and January 2023, the company applied fees to transaction amounts that included value-added tax, resulting in higher charges for South Korean developers than those imposed in certain other markets.
Beyond the financial penalties, the regulator ordered both companies to modify their business practices. Developers must be permitted to include links to external payment options, while the platforms must improve application review procedures and address restrictions affecting alternative billing systems.
Google and Apple have one month after receiving the corrective orders to submit compliance plans and three months to implement the required changes. These obligations give the ruling significance beyond the immediate financial sanctions because they directly affect how the companies operate their app marketplaces.
Apple rejected the regulator’s conclusions, maintaining that its existing practices comply with South Korean legislation. The company emphasized the economic contribution of its App Store ecosystem, reporting that it facilitated 38.1 trillion won in developer billings and sales during the previous year, with more than 90% of that commerce accruing to developers.
Google also expressed disagreement with the decision, arguing that recent changes to its payment policies had not been adequately considered. The company has announced plans to expand alternative billing options and reduce certain service fees, although the Korean regulator determined that the measures under examination warranted corrective action.
The dispute reflects a broader international debate about the economic relationships between digital platforms and the businesses that depend on them. App stores provide distribution, security infrastructure, payment processing and access to extensive consumer networks. However, their control over market access also gives platform operators considerable influence over pricing, customer relationships and commercial conditions.
Similar concerns have prompted regulatory intervention in the European Union. Under the Digital Markets Act, designated gatekeepers face restrictions on preventing business users from directing customers toward alternative purchasing arrangements. In 2025, the European Commission fined Apple €500 million over practices involving external purchase options, while Google has faced separate enforcement actions concerning its Play Store rules.
The convergence of regulatory approaches in Asia and Europe demonstrates how competition authorities are increasingly examining not only whether alternative services are technically available, but also whether the economic conditions attached to them permit meaningful competition.
For independent developers and smaller technology companies, this distinction is particularly important. A payment alternative may offer limited commercial advantages if platform commissions remain substantial or if restrict