South Korea Fines Apple and Google $48M Over App Payments
Oct 30, 2026Regulator orders changes to payment fees and restrictions that have made alternatives difficult for app developers, including subscription businesses.
South Korea has fined Apple and Google a combined $48 million over app payment practices that regulators say effectively pushed developers toward the companies' own billing systems. The October 28 decision also orders both companies to change the fees and restrictions that have made alternative payment arrangements difficult to use.
The Korea Media and Communications Commission imposed penalties totaling 63.71 billion won, approximately $47.6 million. Google was fined 42.9 billion won and Apple 20.81 billion won.
The ruling applies to app payment practices in South Korea. It does not immediately change the rules for developers in other countries, and the ordered changes have not yet taken effect.
Why Alternative Payments Were Not Much of an Alternative
App developers have traditionally relied on Apple or Google's billing systems to collect payments. Both companies permitted some third-party payment options within apps, but South Korea's regulator found that their fees and restrictions made those alternatives difficult to use. Links directing customers to external payment websites were also restricted.
Both companies charged a 26% platform commission when developers used third-party payment systems, just four percentage points below the standard 30% app-store commission. Developers also had to cover their own payment processing and operating costs, reducing the potential financial benefit of choosing another provider.
The alternative payment arrangements lacked certain features available through the companies' billing systems, including subscription-management capabilities. That did not prevent developers from managing subscriptions independently, but it meant they could not necessarily rely on the same tools when using another payment provider.
Google also limited how developers could display prices for different payment methods, while Apple required separate app submissions for certain alternative payment arrangements. The commission concluded that developers had payment choices in principle, but the fees and restrictions effectively steered them toward the app stores' own systems.
What Apple and Google Must Change
South Korea has ordered both companies to allow developers to include links to external payment websites within their apps and revise their third-party payment fees and procedures.
Google must change its guidance on how alternative payment options are presented to customers. Apple must remove its requirement for separate app submissions when developers use certain alternative payment methods.
The decision also addresses app-review practices. The regulator found that both companies had unfairly delayed some reviews without adequate explanations or clear timelines.
Apple faced a separate finding concerning commissions charged to South Korean developers. The regulator determined that differences in the treatment of value-added tax had resulted in higher effective charges for domestic developers than for overseas developers during the period examined.
The companies have one month after receiving their corrective orders to submit compliance plans and three months to implement the required changes.
Google disputed the decision, saying it did not adequately account for payment-policy changes the company announced in March, including plans to expand payment options and reduce fees. Those changes had not yet taken effect in South Korea when the regulator issued its ruling.
Apple also disagreed with the findings, maintaining that its existing practices comply with South Korean law. The company defended the security protections associated with its payment system and said it was reviewing its options.
The decision is the first enforcement action under South Korea's 2021 law prohibiting app-store operators from forcing developers to use particular payment systems.
INSIDER TAKE
The 26% commission is only part of what made alternative payments unattractive. Developers also faced processing and operating costs, while some subscription-management features provided by the app stores were unavailable through alternative payment arrangements. That left businesses paying a substantial platform fee without receiving the full set of services.
South Korea is ordering changes to those arrangements, but subscription operators will still need to weigh what they gain against what they take on when payments move outside an app store. Lower fees may be attractive. Replacing billing features and managing renewals, failed payments and customer support through different systems can introduce costs of their own.
The question is whether developers will gain a practical alternative, with enough control over billing and subscriber relationships to justify the change.
RELATED MEMBER RESOURCES
South Korea's ruling raises a practical question for app-based subscription businesses: what do you gain when you move payment processing, and what billing capabilities might you need to replace? These two Member Center resources help operators examine the cost, responsibilities and control behind their payment arrangements.
Use this decision guide to review payment-provider costs, recurring-payment performance, recovery, accountability and portability. It helps operators examine whether a seemingly cheaper alternative offers enough control and capability to support their subscriber base.
This plain-English guide separates payment processors, gateways, merchant accounts and billing platforms. That distinction helps operators understand which services are included in a payment arrangement, which must be provided elsewhere and who will be responsible when something goes wrong.
SOURCES
- Korea Media and Communications Commission, October 28, 2026 — Official findings, penalties and corrective orders.
- Associated Press, October 28, 2026 — Penalty amounts, payment restrictions and Apple's response.
- Yonhap News Agency, October 28, 2026 — Corrective measures, implementation deadlines and company responses.
- The Korea Herald, October 29, 2026 — Follow-up reporting on the companies' objections.
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