South Korea's Media and Communications Commission on Wednesday fined Google and Apple a combined 63.7 billion won and ordered them to fix their app-store payment rules, in the first enforcement action under the country's 2021 in-app payments law.
Source: Reuters
Yaani, in simple words: 63.7 billion won is about $47.6 million (yaani about 4.76 crore dollars) in fines in total. Google was fined 42.9 billion won (about $32.35 million) and Apple 20.8 billion won, the commission said in a statement.
The Associated Press, reporting the same decision, said the regulator found the two companies abused their dominance in app-store markets by forcing local developers onto their own payment systems and by unfairly delaying app reviews.
Source: Associated Press via Plain Dealer
What the companies must change
The commission ordered corrective measures, including allowing external payment links inside apps and improving payment policies and app-review procedures, according to MLex reporting on the regulator's statement. Developers using other payment providers had still faced commissions of 26%, alongside extra costs and restrictions, MLex said.
Apple said it disagreed with the decision and was evaluating its options under South Korean law, and that it has worked with outside developers to enable innovation through its App Store, Reuters reported. Google did not immediately comment when contacted by Reuters.
For app developers and phone users in South Korea — and for regulators watching in India, Europe and elsewhere — the practical test is what happens at checkout: whether another payment option is easy to find, costs less to provide, and can be used without unnecessary steps.
