Key points
▶ At its 46th plenary meeting at the Government Complex in Gwacheon on the 28th, the Broadcasting Media and Communications Commission voted to impose fines totaling 63.71 billion won and issue corrective orders to Google and Apple for violating the Telecommunications Business Act.
▶ Google was fined 42.9 billion won and Apple 20.81 billion won. After deliberation, the commission decided not to refer the companies for criminal prosecution, a contentious issue in the case.
Google and Apple have been fined more than 63 billion won for forcing app stores to use their own payment systems.
At its 46th plenary meeting at the Government Complex in Gwacheon on the 28th, the Broadcasting Media and Communications Commission voted to impose fines totaling 63.71 billion won and issue corrective orders to Google and Apple for violating the Telecommunications Business Act.
Google was fined 42.9 billion won and Apple 20.81 billion won. After deliberation, the commission decided not to refer the companies for criminal prosecution, a move that had been the subject of controversy.
What did they violate?
The investigation found that both companies used their superior bargaining power to effectively deprive app developers of the right to choose payment methods.
Google continued to charge its own fees even when developers integrated third-party payment options. It allowed external payments in appearance only, while still collecting its fees. Google also barred developers from displaying information to users showing that prices differed depending on the payment method.
Apple required developers seeking to link to external payment services to submit a separate, new app. In effect, developers had to create and obtain approval for an additional app to use external payments. The investigation also found that Apple discriminated by applying different fee standards to domestic and overseas developers.
Both companies were also found to have violated the law by operating opaque review procedures, including failing to adequately explain why app reviews were delayed or when they would be completed.
A sanction more than three years in the making
The case concerns violations of the so-called “anti-forced in-app payments law,” an amendment to the Telecommunications Business Act that took effect in September 2021 as the first law of its kind in the world. The former Korea Communications Commission began a fact-finding investigation in August 2022. On October 6, 2023, it notified the two companies of proposed corrective measures and announced plans to pursue fines of up to 68 billion won. The decision was delayed, and a conclusion was reached three years later, after the commission was reorganized as the Broadcasting Media and Communications Commission.
Before the vote, Commission Chair Kim Jong-cheol said, “More than three years have passed since the proposed corrective measures were issued in October 2023. I hope this action will help address violations by app marketplace operators and protect the rights and interests of app developers and users.”
What the two companies must do
The commission ordered both companies to immediately stop their unlawful practices and revise their payment policies and related procedures.
Google and Apple must submit detailed plans for implementing the corrective measures and report to the authorities on the progress they make. Oversight will focus not just on the amount of the fines, but on whether developers’ fees actually decrease when they introduce external payment options and whether they are free to display prices.