A KFTC examiner’s report says Project Hug tied financial support to favorable Google Play launches, potentially exposing Alphabet to a fine of up to 6% of affected revenue.
South Korea’s antitrust regulator has alleged that Alphabet’s Google abused its dominant position in the Android app marketplace, with conduct the Korea Fair Trade Commission, or KFTC (South Korea’s antitrust regulator), said affected 14.16 trillion won, or $9.1 billion, in revenue. The regulator’s examiner report centers on Google’s Games/Google Velocity Program, internally called "Project Hug," which from July 2019 to March 2026 offered domestic and overseas game developers financial support for using services such as Cloud, Ads and YouTube if they launched games on Google’s app store on terms at least as favorable as rival app marketplaces. The report said the contracts increased support as developers generated more revenue through Google Play, strengthening incentives to prioritize Google’s store. The KFTC’s Market Surveillance Bureau said that structure reduced developers’ incentives to use competing app stores, including South Korea’s OneStore, and amounted to de facto exclusive dealing (arrangements that effectively shut out rivals). If the commission ultimately finds an abuse of market dominance, Google could face a fine of up to 6% of the relevant affected revenue. Google has eight weeks after receiving the report to respond in writing and review the evidence before the full commission moves toward a final ruling.