The Korea Fair Trade Commission (KFTC), South Korea’s antitrust regulator, has imposed a fine of $31.88 million on Google for preventing the release of mobile video games on a competing platform.
Between June 2016 and April 2018, Google mandated video game makers to release their titles exclusively on Google Play in exchange for providing in-app exposure, resulting in harm to the revenue and value of local app market One Store.
The KFTC accused Google of consolidating its market dominance, and claimed that the company’s action against the local app market was aimed at ensuring fair markets.
The regulator had previously imposed a fine of over 200 billion won on Google in 2021 for blocking customised versions of its Android operating system. The KFTC’s move against Google has been aimed at curbing its unfair business practices and ensuring a level playing field for local players.
The KFTC’s decision comes amid growing concerns worldwide regarding the monopolistic practices of big technology companies. Google, which is owned by Alphabet Inc, is facing increasing scrutiny from regulators worldwide, with the U.S. Department of Justice and the European Union (EU) also investigating its business practices.
In the EU, Google has been accused of abusing its market dominance by prioritising its own products in search results, which has led to fines amounting to billions of euros.
Google has said that it will review the final decision by the KFTC to evaluate the next course of action. A spokesperson for the company has also said that “Google makes substantial investments in the success of developers, and we respectfully disagree with the KFTC’s conclusions”.
The company has previously claimed that its policies are aimed at providing a consistent and secure experience for users of the Android operating system.
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Game makers affected by Google’s action include Netmarble, Nexon and NCSOFT, as well as other smaller companies, according to the antitrust regulator. These companies have been impacted by Google’s policies, which have limited their reach and exposure to customers.
The KFTC’s move against Google is expected to have wider implications for big technology companies that operate in South Korea. The regulator has indicated that it will continue to monitor the market for any further violations of competition laws. The regulator has also indicated that it will investigate other big technology companies operating in the country for similar practices.
The KFTC’s decision has been welcomed by local app market One Store, which has been affected by Google’s policies. One Store has stated that Google’s action has significantly impacted its revenue and value as a platform. The company has also called on the KFTC to take further action against Google to ensure a level playing field for local players.
The KFTC’s decision is the latest in a series of regulatory actions against big technology companies worldwide. The EU, the U.S. and other countries have been increasingly scrutinising the business practices of these companies, which are seen as having too much market power.
The move against Google by the KFTC is expected to spur other countries to take similar action against big technology companies that operate in their markets.
In the United States, Google has faced several antitrust lawsuits and investigations, including a high-profile case brought by the Justice Department last year. In Europe, the European Union has fined Google billions of dollars for antitrust violations related to its search engine and mobile operating system.
South Korea’s decision to fine Google for blocking the release of mobile video games on a competitor’s platform is part of a broader effort by the country’s government to ensure fair markets and prevent anticompetitive behavior. Other countries have also taken action against Google and other big tech companies for similar reasons.
