South Korea Says Google Undermined App Store Competition

According to Android Headlines, citing reporting by Sumit Adhikari, the Korea Fair Trade Commission (KFTC) has issued an examiner’s report concluding that Google’s conduct may have violated the country’s competition law. The report represents a significant procedural step in an investigation that has examined Google’s relationships with mobile game developers over several years.

The KFTC alleges that Google’s developer support initiative, internally known as “Project Hug” and externally referred to as the Games/Google Velocity Program, offered financial and promotional benefits to game developers under conditions that favored distribution through Google Play.

Reuters separately reported that the regulator believes the program operated between July 2019 and March 2026 and tied financial support—including services such as Google Cloud, Google Ads and YouTube promotion—to developers launching games on Google Play under terms at least as favorable as competing Android app stores. The regulator argues that the structure of the agreements increased incentives for developers to prioritize Google’s marketplace, reducing the ability of competing platforms to attract major game releases.

Regulator focuses on competition in Android app distribution

The case centers on whether Google’s incentive arrangements amounted to an abuse of market dominance rather than traditional pricing practices.

According to the KFTC’s findings, the agreements allegedly weakened competition by making it less attractive for developers to distribute titles through rival Android marketplaces, including South Korea’s OneStore. Regulators contend that the program effectively created exclusive dealing incentives, even if developers were not explicitly prohibited from using competing stores.

The competition authority estimates that the alleged conduct affected approximately 14.16 trillion won (about $9.1 billion) in relevant revenue during the investigation period. If the commission ultimately determines that Google violated South Korean competition law, the company could face corrective measures and a financial penalty based on the affected revenue. Reuters reported that the potential fine could reach as much as 6% of that amount under applicable rules.

Google disputes the allegations

Google has rejected the regulator’s conclusions.

In a statement reported by Reuters, the company said Google Play competes fairly with other app marketplaces and provides substantial benefits for developers and consumers in South Korea. Google also said it has cooperated with the investigation and intends to demonstrate that it did not violate competition law.

The company is expected to submit a formal response after reviewing the examiner’s report and supporting evidence before the KFTC reaches a final decision.

Latest case adds to broader antitrust scrutiny

The South Korean investigation is the latest in a series of regulatory and legal challenges examining Google’s influence over Android app distribution and digital marketplaces.

South Korea has been among the first jurisdictions to pursue legislative and regulatory measures targeting mobile app store competition. In 2021, the country enacted legislation prohibiting major app store operators from requiring developers to use only their proprietary in-app payment systems, a move widely viewed as an early attempt to curb the market power of dominant digital platforms.

Google has also faced separate legal challenges concerning Google Play in other jurisdictions. In 2025, Korean publishing organizations and an app developer filed a proposed antitrust class action in the United States, alleging that Google’s Play Store practices unlawfully restricted competition in Android app distribution and payment processing. Google has denied wrongdoing in those proceedings.

Source: Android Headlines