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The investigation centers on allegations of violations of the Monopoly Regulation and Fair Trade Act through the abuse of its dominant market position, according to regulatory filings.
The KFTC’s move follows a months-long review of Google’s business practices, which the commission claims have stifled competition in South Korea’s digital economy. A spokesperson for the KFTC confirmed the enforcement process has begun, stating, “We are conducting a thorough investigation into allegations of market dominance abuse, in accordance with our legal mandate to ensure fair competition.”
The case highlights growing global scrutiny of tech giants’ market power, with South Korea joining the European Union and the United States in challenging Google’s business models. The KFTC’s action marks the first major antitrust move against the company in the country, though it faces a complex legal landscape with precedent-setting implications for digital regulation.
Legal Framework and Key Allegations
The KFTC’s investigation is grounded in South Korea’s Monopoly Regulation and Fair Trade Act, which prohibits companies with “market dominance” from engaging in practices that “distort market competition.” The commission’s review specifically targets Google’s alleged control over digital advertising technologies and its App Store policies, according to a 2023 regulatory report.
One key allegation involves Google's ad tech ecosystem, which the KFTC claims gives the company an unfair advantage in programmatic advertising.
The commission also accuses Google of restricting app developers’ access to its Play Store, requiring them to use its in-app billing system for subscriptions. This practice, which generates a significant percentage commission fee, has drawn comparisons to similar cases in the EU and US, where regulators have fined Google for similar practices.
Potential Penalties and Legal Precedents
If found guilty, Google could face penalties up to the maximum allowed under South Korea’s antitrust laws. This figure aligns with the KFTC’s previous largest fine— a previous large fine imposed on Samsung in 2021 for collusion in the memory chip market.
However, the case faces legal challenges due to the precedent set by the 2022 Supreme Court ruling in the “Kakao vs. Google