Fair Trade Commission imposes 50 billion won fine on Google for "hindering competing app markets"

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Korea Fair Trade Commission (KFTC) has begun sanctions against Google for forcing domestic game companies to release apps only through its own application (app) market.

According to the industry on the 25th, the KFTC sent a review report last week to Google regarding allegations of obstructing competing app markets such as One Store. The review report reportedly includes a plan to impose a fine of 50 billion KRW for abuse of market dominance.

Google is accused of forcing domestic game companies such as Nexon, NCSoft, and Netmarble to release apps only through its app market, 'Play Store.' The KFTC judged that this had the effect of obstructing competing app markets like 'One Store.' The KFTC also viewed that by excluding competing app markets, domestic companies were burdened with higher commissions.

The KFTC is expected to hold a plenary session as early as the first half of this year to finalize the level of sanctions.

Meanwhile, the KFTC is also investigating the illegality of Google mandating its payment method, including in-app payments, for all content distributed through its own app market and charging a 30% commission on payment amounts.