Google Korea faces antitrust probe for abusing game firms

By Baek Byung-yeul

Google Korea CEO John Lee

Google Korea is facing an antitrust investigation for allegedly abusing local game developers and distributors, according to the Fair Trade Commission (FTC) and IT company officials Sunday.

The FTC conducted an on-site probe into Google Korea for the past three weeks to check whether the Korean branch of the U.S. internet giant has been exerting pressure on local game companies to release their games exclusively on its app store.

This came about four months after the FTC surveyed local mobile game developers and distributors in April about whether Google Korea pressured them to launch their games only through the Google Play store or not to release their games through other app marketplaces.

Industry sources said the FTC's probe is exceptional as the agency averagely spent about a week on such probes. The FTC didn't make official statements and one of its officials said the agency is “analyzing what has been secured through the latest investigation.”

Google Korea denied that allegation saying it is a developers' choice to decide what kinds of app marketplaces they would use to launch their games.

“It is up to game developers to decide where they would like to launch their games,” an official from Google Korea said. “As long as developers comply with Google Play's developer distribution agreement and policy, they can always release their apps via Google Play.”

Google Korea also denied the allegation that it has not provided any benefits to developers, who chose to distribute their apps only via the Google Play app store.

“Google Play has not given any benefits to developers who decided to release their apps only through the Google Play app store. Furthermore, every app in Google Play can have opportunities to be revealed to Google Play users regardless of whether or not they have launched their apps via other app marketplaces,” Google Korea said.

According to the data compiled by the Korea Mobile Internet Business Association, the Google Play app store is the largest app marketplace here with a share of 61.2 percent last year. It is followed by Apple's App Store with a share of 21.7 percent and a local app market One Store at 13.5 percent.

Google takes 30 percent of the sales as commission from developers. Given its sales in the Korea app market was at around 4.88 trillion won ($43.8 billion) last year, Google is estimated to earn 1.46 trillion won as a commission.

Google's unfair and monopolistic business practices have been criticized in many countries.

Last month, the European Union's Competition Commission imposed about $5.1 billion fine on Google as the commission ruled that the internet giant forced manufacturers to install its search engine and Chrome web browser on the Android operating system.