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- Google and Korean Game Giants in Hot Water Over Alleged Collusion
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.