Google is facing another serious antitrust investigation, this time in South Korea, as the country's Fair Trade Commission (KFTC) alleges that the company exploited its dominance of the Android ecosystem to limit competition in the app store market.
According to the preliminary report of the competent agency, Google's practice affected transactions worth a total of about 14.16 trillion won, an amount equivalent to about 9.1 billion dollars. If the charges are confirmed, the American company may face a particularly large fine, but also significant corrective measures that could change the way Google Play in the country.
In the spotlight is the "Project Hug" program
The investigation focuses on an internal Google program, known as Project Hug, which operated commercially under the name Google Velocity or Google Games Program.
According to the KFTC, the program was implemented from July 2019 to March 2026 and aimed to provide companies game development.
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Funding was not provided directly for the exclusive distribution of applications on Google Play. Instead, Google offered significant benefits, such as Google Cloud credits, advertising, promotion through YouTube , and other services in its ecosystem, on the condition that the games would be released on Google Play on terms at least as favorable as those of competing app stores.
Financial incentives reinforced the dependence of creators
The Korean authority believes that the structure of the program created a strong mechanism for developers to depend on Google Play.
The more revenue a game generated through Google’s platform, the more financial benefits the developer received from the support program. This, the report said, acted as an indirect incentive for companies to prioritize Google Play over other app stores.
The KFTC believes that this practice significantly limited the ability of competitors to attract new titles, leading to a situation resembling de facto exclusive partnerships.
A blow to competition in the app market
One of the biggest losers of this practice is reportedly OneStore, South Korea's largest alternative app store, which is supported by major domestic telecommunications providers.
According to the researchers, many game developers avoided investing substantially in alternative app stores, as the financial benefits they received from Google increased as they strengthened their presence on Google Play.
This practice is considered particularly critical for a market like that of mobile games, where distribution through app stores directly affects the revenues of hundreds of software development companies.
Google's position
Google denies the allegations and maintains that it operates within the bounds of competition. In a statement, it said that Google Play competes equally with other app stores and offers significant advantages to both developers and consumers.
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At the same time, the company emphasizes that it fully cooperated with the Korean authorities during the investigation and intends to present its arguments in detail before any final decision is made.
Google has eight weeks to formally respond to the researchers' report and review all the evidence gathered.
How big can the fine be?
If the KFTC ultimately finds that a dominant position has been abused, South Korean law allows for a fine of up to 6% of the relevant revenue. Based on the financial details of the investigation, this translates into a potential fine of hundreds of millions of dollars, which would be one of the largest ever imposed on a company in the country.
Beyond the financial aspect, however, potential remedies. The committee could force Google to change the way it offers financial incentives to its partners or even modify key Google Play commercial practices.
Big Tech under increasing pressure
The case is part of a broader wave of scrutiny facing big tech companies around the world. In recent years, the United States, the European Union, Japan, the United Kingdom and South Korea have stepped up investigations into the functioning of digital ecosystems, examining whether dominant platforms are restricting competition.
App marketplaces are a key target for regulators, as they are the primary gateway for millions of users to access apps and digital services. Any practice that excessively favors one platform can affect the entire software development ecosystem.
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The KFTC's final decision is eagerly awaited, as it could set another important precedent in the ongoing global scrutiny of Big Tech practices. For Google, the case is not just about the size of a potential fine, but also about how it will be able to work with app developers in the markets of the future.
source: Reuters
