Korean Antitrust Crackdown on Google: 'Project Hug' Under Fire

South Korea's antitrust regulator accuses Google's 'Project Hug' of stifling competition in the Android app market. The Korea Fair Trade Commission alleges Google's dominance affected $9.1 billion in revenue. If proven, a penalty up to 6% of affected revenue may be imposed. Google has eight weeks to respond.

South Korea's antitrust regulator has taken a firm stance against Google, alleging on Wednesday that the tech giant has been abusing its market position in the Android app marketplace. This move by the Korea Fair Trade Commission (KFTC) could lead to significant financial penalties and enforce corrective measures.

The KFTC claims Google's tactics affected 14.16 trillion won ($9.1 billion) in revenue. Through its 'Project Hug', or Games/Google Velocity Program, Google supposedly provided financial incentives to game developers that favored Google's services under the condition that their games launched on its app store, effectively sidelining competitors.

If the commission finds Google guilty of market dominance abuse, fines could reach up to 6% of the affected revenue. Google has an eight-week window to contest the findings and provide a formal response. The KFTC aims to proceed with a final ruling shortly afterward, ensuring Google's rights to due process are fully respected.