South Korean watchdog says Google abused Android app store dominance

• Google's 'Games/Google Velocity Program' offered financial support to game developers contingent on launching games on Google Play with terms at least as favorable as competing app stores, with increasing incentives tied to Google Play revenue generation
• The program allegedly reduced developers' incentives to use competing platforms like South Korea's OneStore, forcing developers into de facto exclusive dealing with Google
• Google could face fines up to 6% of the $9.1 billion in affected revenue (approximately $546 million) and has eight weeks to respond before a final ruling is issued

Summary

Key Development: South Korea's antitrust regulator (KFTC) has accused Google of abusing its dominant position in the Android app marketplace, affecting 14.16 trillion won ($9.1 billion) in revenue.

Central Issue: Between July 2019 and March 2026, Google operated the "Games/Google Velocity Program" (internally called "Project Hug"), which provided financial support to game developers for using Google services like Cloud, Ads, and YouTube. However, this came with the condition that developers launch games on Google Play with terms at least as favorable as competing app stores.

Anticompetitive Practices: The KFTC found that Google's contracts progressively increased financial support as developers generated more Google Play revenue, creating strong incentives to prioritize Google's marketplace. This allegedly reduced developer incentives to use competing platforms, particularly South Korea's OneStore, effectively forcing exclusive dealing arrangements.

Potential Penalties: If the commission confirms the violation, Google could face fines up to 6% of the $9.1 billion affected revenue—potentially reaching $546 million. The regulator will recommend corrective measures and financial penalties.

Company Response: Google denies wrongdoing, stating it "competes fairly with other app stores" and provides benefits to Korean developers and consumers. The company has cooperated with the investigation and maintains no law violation occurred.

Timeline: Google has eight weeks to submit a written response and review evidence before the full commission issues a final ruling.

Market Context: This enforcement action highlights South Korea's aggressive stance on app store competition and adds to global regulatory pressure on Big Tech platform dominance.