South Korean regulator alleges Google abused Android app store dominance

South Korea's antitrust regulator has accused Alphabet's Google of abusing its dominant position in the Android app marketplace, alleging the tech giant hindered competition. The Korea Fair Trade Commission's Market Surveillance Bureau found that Google's actions affected approximately 14.16 trillion won ($9.1 billion) in revenue.

According to the bureau's examiner's report, Google's 'Project Hug' (internally known as 'Project Hug') offered financial support to domestic and international game developers between July 2019 and March 2026. This support was contingent on developers launching games on Google's app store with terms at least as favorable as those offered by rival marketplaces. The contracts were structured to progressively increase financial support as developers generated more revenue through Google Play, thereby creating stronger incentives to prioritize Google's platform.

The regulator stated that this program significantly reduced developers' motivation to distribute games through competing app stores, such as South Korea's OneStore, effectively blocking rivals' business activities and leading to de facto exclusive dealing with Google. If the commission ultimately finds Google guilty of abusing its market dominance, it could impose a fine of up to 6% of the relevant affected revenue.

Google has been given eight weeks from the receipt of the examiner's report to submit a written response and review the evidence. The bureau indicated plans to convene the full commission and issue a final ruling promptly after Google's due process rights have been observed.