Google Opens 10th Store, Adapts to South Korea Law

Google’s Retail Push and Regulatory Adjustments

Google opened its 10th US retail store in San Diego this May, marking a strategic expansion after opening four locations last year. The company simultaneously announced it will allow developers to bypass its app store payment system in South Korea, complying with a 2023 law that bans mandatory platform fees. These moves highlight Google’s balancing act between growth and regulatory compliance in a fragmented global market.

The San Diego store follows locations in New York, Los Angeles, and other major cities. Google’s physical retail network now spans 10 stores, with plans to accelerate openings in 2025. Separately, the South Korean law—dubbed the ‘anti-Google law’—requires app stores to let developers use alternative payment processors. Google’s compliance comes after Apple faced similar regulatory pressure in the EU, forcing a 15% fee reduction for app developers.

Sanctioned Apps Remain on Google Play

A 2025 investigation by the Tech Transparency Project found 18 apps on Google Play linked to U.S.-sanctioned entities, including Russian banks supporting Ukraine’s invasion and a Chinese paramilitary group tied to human rights abuses. This follows a 2025 report revealing 52 such apps on the Apple App Store, raising questions about Google’s vetting processes despite claims of compliance.

Google removed 17 of the 18 identified apps after TTP provided its list, but one remains active as of July 2025. The company stated it ‘is committed to compliance with applicable sanctions,’ but the investigation showed apps directly listed connections to sanctioned entities—including full names and addresses matching OFAC databases. This contrasts with Apple’s removal of 24 apps from its store, though 11 remain live despite repeated violations.

The Cost of Compromising Compliance

Google’s decision to let developers use external billing systems in South Korea mirrors Apple’s forced compliance with the EU’s Digital Markets Act. Both companies argue platform fees cover infrastructure costs and fraud prevention, but regulators increasingly view these charges as anti-competitive. In South Korea, Google’s adjustment avoids potential fines under a law that could impose up to 10% of annual revenue for noncompliance.

The sanctioned app issue exposes a gap between corporate policies and real-world enforcement. Google’s statement about ‘taking appropriate action’ against violations lacks specifics, and its response—removing most but not all flagged apps—suggests a reactive rather than proactive approach. This pattern has cost Apple $10 million in fines since 2019 for similar lapses, yet the problem persists six years later.

What’s Next for Google’s Dual Fronts

In the short term, Google’s retail expansion faces competition from Apple Stores and Amazon’s pop-up locations, which offer deeper in-store tech experiences. The company must prove its new stores drive hardware sales or software adoption, not just brand visibility. Meanwhile, the South Korea payment change could pressure Google to replicate the policy in other jurisdictions, further eating into its 30% app store revenue stream.

Longer term, the sanctioned app saga underscores a systemic challenge: how to audit millions of apps for compliance with sanctions lists that update constantly. Both Google and Apple rely on automated screening tools, which TTP’s investigation shows remain blind to obvious violations. The next test will be whether regulators force stricter manual reviews or penalize companies for recurring lapses. For now, Google’s partial clean-up and vague commitments leave the door open for more sanctioned entities to exploit its platforms.