Seoul probes Google over fair trade violations in Android app market
Synopsis
South Korea's antitrust watchdog has formally opened an investigation into Google over its Games Velocity Program — a subsidy scheme that allegedly locked major game developers into exclusive deals and kept them off rival Android app marketplaces. With related sales at US$9.21 billion and a potential fine of up to 6%, this could be one of the costliest regulatory challenges Google faces in Asia.
Key Takeaways
South Korea's Fair Trade Commission (FTC) launched a probe into Google and its Singaporean and South Korean offices on 1 July 2025 .
The investigation targets Google's Games Velocity Program (GVP) , which allegedly tied developer subsidies to exclusive or preferential treatment on the Android marketplace.
Related sales cited by the FTC total US$9.21 billion ; a fine of up to 6% of that amount may be imposed.
FTC examiners found the GVP agreements significantly hindered game developers from listing on rival platforms.
Google has eight weeks to file written opinions in response to the examiners' report.
The FTC separately approved ₩3 billion in corrective measures from Coupang Corp. over unrelated subcontractor disputes.
South Korea's Fair Trade Commission (FTC) on Wednesday, 1 July announced it has launched a formal investigation into Google LLC, along with its Singaporean and South Korean subsidiaries, over alleged violations of fair trade law involving game developers on its Android app marketplace. The probe centres on whether Google abused its dominant market position, with related sales reportedly totalling US$9.21 billion.
What the Investigation Found
According to the FTC's examiners' report, Google signed Games Velocity Program (GVP) agreements with major game developers — both domestic and international — to discourage them from listing on rival app marketplaces. The programme offered subsidies on Google Cloud and advertising costs in exchange for developers granting Google 'most favourable treatment', including earlier game release dates on its platform compared to competing storefronts.
FTC examiners concluded that these GVP agreements had significantly hindered game developers from entering rival marketplaces, disrupting the business activities of competing platforms. The agreements were also found to have effectively compelled game developers into exclusive dealing arrangements with Google.
Potential Penalties
Under South Korean fair trade law, the FTC has the authority to impose a fine of up to 6 per cent of the related sales figure following its deliberations. Based on the US$9.21 billion in related sales cited by the commission, this could translate into a substantial financial penalty for the US tech giant. Google has been granted eight weeks to submit written opinions in response to the examiners' report.
Context: A Pattern of Scrutiny
This investigation is the latest in a string of regulatory actions South Korea has taken against major technology platforms. The country's antitrust authorities have previously levied fines against Google over app store billing practices. This probe specifically targets the GVP framework, which critics argue was designed to lock in developer loyalty and foreclose competitive alternatives in the Android ecosystem.
Notably, the FTC's action against Google comes shortly after the same watchdog approved ₩3 billion (approximately US$1.94 million) in voluntary corrective measures proposed by e-commerce giant Coupang Corp. and its private-label affiliate, Coupang Private Label Brands (CPLB), over unfair dealings with subcontractors. That case involved contracts that omitted legally required information and unauthorised price reductions affecting 314 subcontractors since 2022.
What Happens Next
The FTC will review Google's written response before proceeding to deliberations and a final ruling. A formal fine, if imposed, would add to the growing list of regulatory costs Google faces across Asia and Europe. The outcome of this case could have broader implications for how app marketplace operators structure developer incentive programmes globally.
Frequently Asked Questions
What is South Korea's FTC investigating Google for?
The FTC is investigating Google over its Games Velocity Program (GVP), which allegedly offered subsidies to game developers on the condition that they gave Google preferential treatment — including earlier release dates — over rival app marketplaces. Examiners concluded this effectively forced developers into exclusive dealing with Google.
What is the Games Velocity Program (GVP)?
The GVP is a Google programme that subsidised game developers' costs for using Google services such as Google Cloud and advertising. In exchange, developers were required to grant Google 'most favourable treatment' compared to competing app marketplaces, including priority release dates.
How large could the fine against Google be?
Under South Korean fair trade law, the FTC can impose a fine of up to 6% of related sales following its deliberations. The FTC has cited related sales of US$9.21 billion in this case, making the potential penalty substantial.
What is Google's next step in the investigation?
Google has eight weeks from the release of the FTC examiners' report to submit written opinions. The commission will review those responses before proceeding to final deliberations and a ruling.
How does this case fit into South Korea's broader Big Tech regulation?
South Korea has been one of the most proactive jurisdictions in regulating app store practices, having previously fined Google over in-app billing policies and passed legislation requiring third-party payment options. The GVP investigation extends that regulatory focus to developer incentive structures and marketplace exclusivity.
