South Korea’s antitrust regulator has accused Google of abusing its dominance in the Android app market by using a programme that allegedly pressured game developers to favour Google Play over rival app stores, according to a Reuters report.
The Korea Fair Trade Commission (KFTC) said it has sent an examiner’s report to Google, formally initiating proceedings that could lead to corrective orders and a financial penalty. The regulator alleges Google’s conduct affected about 14.16 trillion won ($9.1 billion) in revenue. Under South Korean law, the fine could be as high as 6% of the affected revenue if the violation is confirmed.
What the regulator alleges: According to the KFTC, Google ran the Games/Google Velocity Program (GVP), internally called Project Hug, from July 2019 to March 2026. The programme offered game developers financial support tied to Google services such as Cloud, Ads and YouTube. In return, Google required developers to launch their games on Google Play on terms at least as favourable as rival app stores, including launch timing and quality.
The regulator also said Google’s support increased as developers generated more revenue through Google Play. It argues that this structure reduced developers’ incentives to distribute games through rival marketplaces such as OneStore, restricted competitors’ ability to grow, and effectively locked participating developers into Google’s ecosystem.
What happens next? The KFTC has classified the alleged conduct as an abuse of market dominance and an unfair exclusive dealing practice under South Korea’s Fair Trade Act. The final decision, including the size of any penalty, will be taken after Google responds to the allegations. Google has eight weeks to submit its written defence before the commission issues its ruling.
Why this matters: The case adds to global scrutiny of Google’s control over app distribution and payments. In 2022, India’s Competition Commission fined Google Rs 936 crore in a Play Store billing case and ordered it to allow third-party billing systems. In 2021, South Korea became the first country to require Apple and Google to allow alternative in-app payment systems. In the EU, Google has separately faced major antitrust action, including a €2.4 billion fine upheld in 2024 over its Google Shopping practices.Â
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