 |
Photo = Yonhap news |
[Alpha Biz= Paul Lee] The Korea Fair Trade Commission (KFTC) has conducted an on-site investigation into NCSoft as part of its probe into allegations that Google provided unfair rebates to major Korean game developers to maintain its dominance in the app market.
According to the KFTC on June 24, investigators visited NCSoft’s headquarters in Pangyo on June 23 to collect related materials. The company is reportedly being investigated as a reference party in the case, not as a subject of direct suspicion.
The investigation stems from a complaint filed in November last year by the Citizens' Coalition for Economic Justice (CCEJ), a civic group that accused Google of abusing its market-dominant position. The group claims that Google offered financial incentives such as revenue-sharing or advertising benefits to top Korean game developers—including NCSoft, Netmarble, Com2uS, and Pearl Abyss—on the condition that they exclusively use Google Play as their app distribution platform.
CCEJ estimated the profits Google gained from such alleged unfair practices at approximately KRW 685 billion (about USD 490 million), with the total scale of unfair trade reaching over KRW 1.26 trillion (about USD 900 million). The group also criticized Google’s increasingly strict in-app payment policies, asserting that these practices stifled competition and hindered the growth of rival platforms such as One Store.
The KFTC officially launched its deliberation process on the case in January and began its on-site investigation five months later. This follows a previous decision in April 2023, when the commission fined Google KRW 42.1 billion for allegedly offering marketing subsidies to game developers in order to suppress competition from One Store.
Industry observers are closely watching the ongoing developments, with the possibility of future investigations into Google Korea and potential penalties such as additional fines or corrective orders not being ruled out.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
