S. Korea launches probe into Google over app market practices
Quick Look
- South Korea's antitrust watchdog has launched an investigation into Google LLC over allegations of abusing its dominant position in the Android app marketplace.
- The probe focuses on Google's 'Games Velocity Program' agreements with game developers, which allegedly prevented them from joining rival marketplaces.
AI-generated summary
Why It Matters
South Korea's Fair Trade Commission is investigating Google for alleged violations of fair trade law concerning its app marketplace practices with game developers.
By Kang Yoon-seung
SEOUL, July 1 (Yonhap) -- Seoul's antitrust watchdog said Wednesday it has launched an investigation into U.S.-based Google LLC, as well as its Singaporean and South Korean offices, over allegations of violations of the fair trade law involving game developers on its app marketplace.
The Fair Trade Commission (FTC) said its examiners' report showed Google has abused its dominance in the Android marketplace, with related sales totaling US$9.21 billion. Under the law, the watchdog may impose a fine of up to 6 percent of the amount following its deliberations.
The FTC said Google signed the Games Velocity Program (GVP) agreements with major game developers at home and abroad to prevent their potential departure from its app marketplace.
The program centers on subsidizing game developers' costs for using Google services, such as Google Cloud and advertising, on the condition that they give Google most favorable treatment compared to other app marketplaces, including earlier release dates.
The FTC said its examiners had concluded that the agreements had significantly hindered game developers from entering rival app marketplaces, disrupting other platforms' business activities.
The examiners also determined that the GVP agreements had effectively forced game developers to engage in exclusive dealing with Google.
Google, meanwhile, has eight weeks to file written opinions regarding the examiners' report.
Open Questions
- Will Google face fines?
- What is the final ruling?
- Will Google change its practices?
