SEOUL—Google can’t punish South Korean app developers for offering payment workarounds, a blow to the U.S. tech giant’s efforts to maintain its lucrative commission on digital sales in the country.

Google, a unit of Alphabet Inc., had sought with policy changes to block app developers from providing an in-app link to an outside website to buy digital goods—a payment option called “outlinking” that sidesteps Google’s own fees. Those offering the external links couldn’t update their apps starting this month and could be removed from the Google Play Store by June 1, the company said recently.

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This post first appeared on wsj.com

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