South Korea’s antitrust regulator has raised significant concerns regarding Google’s practices within the Android app marketplace. The Korea Fair Trade Commission (KFTC) announced on Wednesday that it has identified potential abuses of market dominance by Alphabet’s Google, which may have stifled competition and will recommend both corrective measures and a financial penalty.
Allegations of Market Manipulation
According to the KFTC’s Market Surveillance Bureau, Google’s alleged actions have impacted a staggering 14.16 trillion won (approximately .1 billion) in revenue. This finding was disclosed during a media briefing where the bureau presented its examiner’s report on the situation.
The report highlights Google’s “Games/Google Velocity Program,” internally referred to as “Project Hug,” which operated from July 2019 to March 2026. This initiative provided financial support to both domestic and international game developers, contingent upon their agreement to launch games on Google’s app store under terms that were at least as favorable as those offered by competing platforms.
Incentives and Exclusivity
The structure of these contracts was designed to progressively increase Google’s financial support as developers generated more revenue through Google Play. This created a compelling incentive for developers to prioritize Google’s marketplace over others.
The KFTC’s report indicates that this program significantly diminished developers’ motivations to distribute their games through rival app stores, such as South Korea’s OneStore. Consequently, this practice effectively forced developers into a state of de facto exclusive dealing with Google, thereby obstructing competition and limiting market choices.
Potential Consequences for Google
If the KFTC concludes that Google indeed abused its market dominance, the company could face a fine of up to 6% of the affected revenue, which translates to approximately 6 million based on the reported figures.
Google has been granted an eight-week period to respond to the examiner’s report and review the evidence presented. The KFTC has indicated that it will convene the full commission to issue a final ruling promptly, ensuring that Google’s due process rights are fully respected throughout the proceedings.
