What Google Is Accused Of
Between July 2019 and March 2026, Google operated an internal program called Project Hug (also known as the Games/Google Velocity Program). The initiative offered game developers financial support including cloud services, advertising assistance, and YouTube promotion. The catch: developers had to launch their games on Google Play under terms at least as favorable as those offered on rival platforms.
This arrangement created a powerful incentive structure. The level of support increased based on how much revenue developers made through Google Play, effectively pushing them to prioritize the platform. The program affected 22 major game companies, including five South Korean firms: NC, Nexon, Netmarble, Pearl Abyss, and Com2uS. Seventeen foreign companies like Activision Blizzard King and Riot Games also participated.
The KFTC argues this arrangement prevented developers from distributing games through competing platforms, particularly South Korea’s OneStore. While Google never explicitly prohibited use of rival app stores, the financial incentives made such diversification economically unviable. With Google controlling over 80% of the Korean Android app market, this de facto exclusivity effectively limited competitors’ growth.
Potential Consequences
The KFTC can impose fines up to 6% of the affected revenue, meaning Google could face a penalty of 849.6 billion won (roughly $546 million). Google has been given an eight-week period to submit objections and review case materials. After that, the KFTC will hold a plenary session to issue its final ruling.
The Commission is also considering Google’s prior violation history. In April 2023, the KFTC fined Google 42.1 billion won for a similar scheme involving exclusive placement arrangements on Google Play. This previous offense could factor into calculating the current penalty.
Broader Global Implications
The Korean case mirrors parallel enforcement actions in other jurisdictions. In the United States, court documents from Epic Games v. Google reveal Google paid Activision Blizzard King $360 million in cash and benefits in exchange for the company foregoing exclusive or early launches on competing app stores. The consistency across cases suggests regulators worldwide are identifying similar anticompetitive patterns.
For developers, the takeaway is clear: support programs from major platforms warrant careful scrutiny. Even without explicit contractual restrictions, terms that tie financial benefits to preferential treatment can constitute market abuse under antitrust law. The outcome of South Korea’s case could influence how platforms structure developer partnerships globally.
Google’s Response
Google has dismissed the KFTC’s allegations as unfounded. A company representative stated that Google cooperated in good faith throughout the investigation and plans to demonstrate that no legal violation occurred. The company intends to submit a detailed response during the eight-week objection period, though it has not yet addressed the specific merits of the KFTC’s findings.
The case underscores growing regulatory pressure on Google’s app store practices. As antitrust scrutiny intensifies globally, the company faces similar challenges in the United States, European Union, and elsewhere over allegations of leveraging its dominant position to disadvantage competitors.
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