On July 1, 2026, South Korea's antitrust watchdog, the Korea Fair Trade Commission (KFTC), accused Alphabet's Google of leveraging its dominant position in the Android app market to stifle competition and announced its intention to implement corrective measures and levy fines. A probe conducted by the KFTC unveiled that from July 2019 to March 2026, Google extended financial assistance to both domestic and international game developers via its 'Games/Google Velocity Program' (internally referred to as 'Project Hug'). This support was contingent upon developers agreeing to terms that were no less favorable than those offered to Google's competitors when listing their games on the Google Play Store. Furthermore, Google's financial aid escalated in tandem with the developers' earnings on Google Play, thereby creating a potent incentive that coerced developers into prioritizing the Google Play Store.
The KFTC concluded that this initiative deterred developers from distributing their games through rival app stores, including South Korea's indigenous OneStore, impeded the business operations of competitors, and effectively compelled developers into exclusive dealings with Google. Should Google be ultimately deemed to have misused its market dominance, the KFTC has the authority to impose a fine of up to 6% of the relevant revenue, potentially reaching $9.1 billion, or roughly $546 million. Google has responded by stating its commitment to fully cooperate with the investigation and demonstrate its compliance with the law. Following the receipt of the review report, Google has a period of eight weeks to submit a written response and scrutinize the evidence presented. The KFTC intends to reach a conclusive decision as expeditiously as possible, while ensuring Google's entitlement to due process.
