Apple and Google can still charge developers a 26% platform fee on certain purchases in South Korea even when another provider processes the payment. The country's regulator has ordered changes after finding that fees and restrictions effectively pushed developers towards the companies' own billing systems.
On 28 October 2026, the Korea Media and Communications Commission (KMCC) approved penalties totalling approximately £35.63 million (63.71 billion won). Google faces £23.99 million (42.9 billion won), while Apple's penalty is £11.64 million (20.81 billion won).
The regulator's decision also covers unfairly delayed app reviews and discriminatory commission calculations by Apple.
Apple disputes the ruling and maintains that its practices comply with South Korean law, while Google says the decision failed to reflect its recent payment-policy changes.
Why Alternative Payments Still Carry Fees
Using another payment provider does not automatically remove the platform's commission. The payment-processing charge and the fee for using the app marketplace are separate costs.
Apple's published South Korean terms specify a 26% commission on the price paid by the customer, including VAT. Developers must arrange payment processing and meet the programme's requirements, including submitting a separate version of the app distributed solely in South Korea.
Korea’s media regulator fined #Google and #Apple a combined 63.71 billion won ($47.6 million) for forcing app developers to use their own in-app payment systems, three years after the companies were first notified of the proposed sanctions.https://t.co/QLeZ6ac4s1
— The Korea JoongAng Daily (@JoongAngDaily) October 28, 2026
Google's existing programme reduces the applicable service fee by four percentage points when a customer uses alternative billing.
A transaction otherwise charged at 30% therefore attracts a 26% fee. Developers on lower rates pay less, so 26% is not a universal Google charge.
For illustration, a 26% fee on a £5.59 (10,000-won) commission base is approximately £1.45 (2,600 won). Separate payment-provider charges can reduce the saving from switching.
The result depends on the developer's applicable rate and processing arrangement.
What the Regulator Found
The KMCC said both companies permitted third-party payments within apps but barred other methods, including payments through external websites. It found that commissions and restrictions made alternatives less attractive, effectively pushing developers towards the companies' own systems.
The commission also found that both companies unfairly delayed app reviews. According to the regulator, developers did not receive specific explanations for delays or clear answers about when reviews would proceed.
Separately, the KMCC found that Apple calculated commissions differently for domestic and overseas developers between July 2015 and January 2023.
It said Apple applied its 30% commission to VAT-inclusive consumer prices for domestic developers, but VAT-exclusive prices for overseas developers. The regulator determined that this amounted to unfair discrimination.
The commission described the decision as the first enforcement of the prohibited practices introduced for app market operators through the 2021 amendments to the Telecommunications Business Act.
Apple and Google Challenge the Decision
Apple told The Associated Press that it disagreed with the decision and was evaluating its legal options. It defended the security protections offered by its payment system and argued that some safeguards could be lost through alternative methods.
Google expressed regret, according to Yonhap. The company said the commission had not taken sufficient account of recent changes intended to expand developers' payment options and reduce commissions.
These are regulatory findings, not criminal convictions. Yonhap reported that the commission would not file criminal complaints against either company.
What Changes for Developers and Customers
Yonhap reported that the corrective orders require external payment links within apps and reasonable fees for third-party payments. Google must revise its third-party payment guidelines, while Apple must remove its separate-app requirement.
Compliance plans are due within one month of receiving the orders, with implementation required within three months.
Separately, Google's published timetable schedules revised service fees and expanded billing choice for South Korea on 31 December 2026.
Its proposed structure retains service fees for alternative billing and external payment links. That announcement predates the regulator's decision.
For customers, Apple's documentation says its own refund and subscription-management support is unavailable for purchases through alternative providers. Developers must handle those matters, which does not mean customers have no refund options.
The decision does not itself guarantee lower consumer prices. Any savings will depend on the fees developers ultimately pay and whether they pass reductions on to customers.
