Google and Korean Game Giants in Hot Water Over Alleged Collusion
Allegations of Google and Korean Game Companies’ Collusion Spark Controversy
Domestic game companies have come under scrutiny following allegations that they unfairly received benefits, such as profit-sharing and marketing campaign support, in exchange for releasing their game apps exclusively on Google Play Store. The Citizens’ Coalition for Economic Justice (CCEJ) accused Netmarble, NCSoft, Com2uS, and Pearl Abyss of collaborating with Google to monopolize the app market. These companies have denied the allegations, stating that they have neither received rebates nor engaged in illegal activities.
At a press conference on October 21, the CCEJ, alongside the Korea Game User Association and the Korea Game Consumer Association, claimed that Google Korea, Google Asia Pacific, and the four game companies unfairly acquired approximately 685 billion won in profits through rebate programs, manipulated app exposure in advertisements, and supported Lifetime Value (LTV) creation programs. The coalition estimates the total financial impact of these practices to be 1.26 trillion won.
The CCEJ urged the Fair Trade Commission (FTC) to take action, recommending fines of 69.8 billion won for Google’s abuse of market dominance and advocating for a reduction in in-app payment fees from the current 30% to 4–6%. The coalition asserted that game companies received rebates from Google’s commission fees or benefited from preferential advertising terms in exchange for releasing their apps exclusively on Google Play.
Google and Game Companies Respond
Google denied any wrongdoing in its app market operations. A Google official stated, “The interpretation by the Citizens’ Coalition for Economic Justice is inaccurate. Google Play provides various benefits to Korean developers and users while faithfully competing with other app markets.”
The accused game companies also strongly refuted the claims. NCSoft, which faces the largest proposed penalty of 27.1 billion won, stated, “We have not harmed other companies or users to increase the influence of a specific platform. These allegations damage the reputation of our company and shareholders without clear evidence.” Similarly, Netmarble and Com2uS asserted that they did not engage in unfair practices or receive rebates.
The Role of “Project Hug”
The controversy centers around a Google program called “Project Hug,” which was implemented in 2019 to solidify Google’s market dominance. Under this program, Google reportedly provided rebates to game companies in return for releasing apps exclusively on Google Play. According to international media reports, including The Verge, Google approached 22 game companies worldwide, including EA, and successfully reached agreements with 20 of them.
The allegations against Google and the game companies have gained traction partly due to internal data revealed during Epic Games’ antitrust lawsuit against Google. The CCEJ cited this internal evidence in its appeal to the FTC, reinforcing claims of collusion and market manipulation.
As this legal and regulatory battle unfolds, all eyes are on the Fair Trade Commission and how it will address the balance of power in the Korean app market and beyond.
