Seoul:South Korea's broadcasting and telecommunications regulator announced a fine of 63.7 billion won ($45 million) against Google and Apple for limiting app developers' payment options through their in-app payment policies.

According to Anadolu Agency – English, the Korea Media and Communications Commission (KMCC) approved the fines, citing violations of the Telecommunications Business Act. While corrective orders will be issued, the regulator will not pursue criminal complaints against the companies.

The KMCC found that both tech giants abused their market dominance by enforcing specific payment methods and restricting third-party payment options. This decision follows an initial notification of violations to Google and Apple in October 2023.

The commission has mandated that the companies enable developers to offer alternative payment methods, including external payment links within apps, and establish reasonable fees for third-party payment systems. Google is required to update its guidelines for third-party payments, while Apple must eliminate its requirement for developers to submit separate apps for alternative payment methods.

KMCC Chairman Kim Jong-cheol emphasized the importance of a cooperative relationship between app market operators and developers to ensure a fair app market ecosystem. Both Google and Apple need to submit compliance plans within one month and implement the changes within three months.

Google expressed disappointment with the decision, stating that recent policy adjustments to broaden payment options and lower commission fees were not considered. Apple also disagreed, highlighting that over 90% of revenue from its App Store ecosystem was returned to developers last year and asserting that its changes comply with the Telecommunications Business Act. The company is assessing its next steps under Korean law.