South Korea's Korea Media and Communications Commission (KMCC) has fined Apple $15.5 million and ordered policy changes over App Store payment practices and app review procedures. The KMCC cited three violations: forcing specific payment methods, unfairly delaying app reviews, and imposing discriminatory commissions. Specifically, Apple was found to have effectively forced developers to use its in-app payment systems by imposing a 26% commission and additional restrictions on third-party alternatives.
Regarding app reviews, the KMCC found that Apple and Google delayed reviews by not providing specific reasons or clear timelines for responses to developer inquiries. On discriminatory commissions, the KMCC found that between July 2015 and January 2023, Apple calculated its 30% commission differently for South Korean and overseas developers, charging overseas developers based on prices excluding value-added tax (VAT) while South Korean developers were charged based on prices including VAT. Apple stated it disagrees with the decision and is evaluating options according to South Korean laws.
This enforcement marks the first case under the 2021 amendment to the Telecommunications Business Act, which introduced prohibited acts for app market operators. The decision follows similar regulatory pressure in Brazil, Japan, and the European Union, where Apple has introduced alternative distribution and payment options. Apple maintains it has worked with outside developers to enable innovation through its App Store.
Source: 9to5Mac · Summarized by HeadlinesBriefing