South Korea's antitrust authority has formally accused Alphabet Inc.'s Google of abusing its dominant position in the Android app market to stifle competition, proposing corrective actions and a potential fine.
The Market Surveillance Bureau of the Korea Fair Trade Commission (KFTC) presented its investigation findings, alleging Google's conduct impacted revenue amounting to 14.16 trillion won (approximately $9.1 billion).
The regulator stated that from July 2019 through March 2026, Google's "Project Hug" initiative, also known as the Google Play Velocity program, provided financial incentives to game developers. These incentives were conditional on the developers launching their games on the Google Play Store with terms at least as favorable as those on rival platforms, while also encouraging the use of Google's cloud, advertising, and YouTube services.
The structure of these agreements meant Google's financial support increased in line with the revenue developers generated through Google Play, creating a stronger incentive for them to prioritize Google's app marketplace.
The report concluded this program significantly reduced developers' motivation to distribute games through other app stores, including South Korea's OneStore, hindered competitors' business activities, and effectively forced developers into exclusive arrangements with Google.
Google responded in a statement: "Google Play competes fairly with other app stores and provides many benefits to developers and consumers in Korea. We have fully cooperated with the KFTC's investigation and will continue to demonstrate to the Commission that we have not violated any laws."
If the KFTC ultimately rules that Google abused its market dominance, it could impose a fine of up to 6% of the relevant affected revenue, which is the $9.1 billion figure cited.
Google has eight weeks from receiving the review report to submit a written response and examine the evidence. The KFTC stated it will convene a plenary committee meeting for a final ruling once Google's due process rights have been fully guaranteed.
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