Global Scrutiny Tightens on Apple and Google’s App Store Fees as Korean Developers Join Legal Fight (Image supported by ChatGPT)
SEOUL, June 6 (Korea Bizwire) – Global tech giants Apple and Google are facing intensifying legal and political challenges to their longstanding in-app payment fee policies, prompting a growing number of South Korean game and IT companies to join class action efforts in the United States.
According to Wither People, a Seoul-based law firm representing the plaintiffs, over 100 South Korean firms have now joined a U.S. class arbitration case targeting what they call excessive commission rates — up to 30% — on app sales and in-app purchases facilitated through the platforms.
Plaintiffs argue that such fees amount to monopolistic behavior, calling for significant reductions and financial compensation.
In a separate antitrust lawsuit filed earlier this month, Korean game publisher Pangsky (KOSDAQ: 266350), alongside the Korea Publishers Association and the Korea Electronic Publishing Association, sued Google in federal court in Oakland, California.
The publishing industry estimates that Google’s and Apple’s payment policies have caused annual damages of 60 to 80 billion won (approximately $45 to $60 million USD) in South Korea alone.
Fueling the legal offensive is a recent ruling by the U.S. District Court for the Northern District of California, which ordered Apple to halt its practice of charging a 27% fee on external payment links — a workaround developers adopted after a 2020 antitrust suit by Epic Games.
The court also ordered a criminal investigation into Apple’s alleged noncompliance with prior injunctions.
Similarly, Google was ordered late last year to allow third-party payment systems in its Play Store and to refrain from forcing exclusive agreements with developers to use its billing service.
Europe, too, is ramping up scrutiny. The EU has launched investigations under its Digital Markets Act (DMA), aimed at curbing the power of Big Tech in digital ecosystems.
Amid these global developments, newly inaugurated South Korean President Lee Jae-myung has pledged regulatory reforms to “normalize” app market commission structures.
According to his Democratic Party’s campaign manifesto, Lee intends to introduce supplementary legislation banning discriminatory conditions against third-party payment systems and capping fees at fair levels.
Lawmakers are also taking action. Last month, Democratic Party lawmaker Choi Min-hee proposed an amendment to the Telecommunications Business Act, banning retaliatory business practices by dominant app market operators like Google and Apple.
For South Korea’s game industry — where mobile titles account for a substantial share of revenue — the potential impact is significant. If commission rates were reduced to below 10%, leading developers such as NCSoft, Netmarble, and Com2uS could see considerable cuts in operating costs, which are already heavily burdened by labor and platform fees.
“The new administration seems determined to address the issue, and we’re hopeful for change,” said one game industry executive. “As cross-platform development becomes more prevalent, we also expect a rise in proprietary payment systems for PC versions of mobile games.”
The unfolding legal and regulatory pressures could mark a pivotal shift in the global digital marketplace, reshaping the dynamics between platform operators and content creators.
Kevin Lee (kevinlee@koreabizwire.com)
