South Korea’s antitrust regulator, the Korea Fair Trade Commission (KFTC), has accused Google of abusing its dominant position in the Android app marketplace. The KFTC alleges that Google hindered competition and will recommend corrective measures and a financial penalty as a result.
According to the Market Surveillance Bureau of the KFTC, Google’s alleged abuse of market dominance in the Android app marketplace has had a significant impact, affecting 14.16 trillion won ($9.1 billion) in revenue. The bureau released an examiner’s report detailing Google’s actions in a media briefing.
From July 2019 to March 2026, Google’s Games/Google Velocity Program, internally known as “Project Hug,” provided financial support to domestic and overseas game developers for using Google services such as Cloud, Ads, and YouTube. However, this support was contingent on developers launching games on Google’s app store under terms at least as favorable as rival app marketplaces.
The contracts between Google and developers were structured in a way that incentivized developers to prioritize Google’s marketplace. As developers generated more revenue through Google Play, they received increased financial support from Google, creating stronger incentives to continue using Google’s platform.
This program effectively reduced developers’ incentives to distribute games through competing app stores, such as South Korea’s OneStore. The report alleges that this practice blocked rivals’ business activities and forced developers into de facto exclusive dealing with Google.
Google has responded to these allegations by stating that Google Play competes fairly with other app stores and provides numerous benefits to developers and consumers in Korea. The company has cooperated with the KFTC’s investigation and maintains that it has not violated any laws.
If the KFTC ultimately concludes that Google abused its market dominance, Google may face a fine of up to 6% of the affected revenue, which amounts to $9.1 billion. Google has eight weeks from receiving the examiner’s report to submit a written response and review the evidence. The KFTC plans to convene the full commission and issue a final ruling promptly once Google’s due process rights have been fully observed.
In conclusion, the KFTC’s allegations against Google highlight the ongoing scrutiny of tech giants and their practices in various markets. The outcome of this case will have implications for Google’s operations in South Korea and may set a precedent for future antitrust actions in the tech industry.
(Reporting by Heekyong Yang; Editing by Christian Schmollinger)
