Fair Trade Commission to Begin Compliance Inspection of Google's 'Gapjil' Practices

On the 16th, the Fair Trade Commission Announces Plan to Start Compliance Inspection Targeting Google

The Fair Trade Commission (FTC) will begin monitoring whether Google complies with sanctions after it forced domestic game companies to use only its app market, an act considered as 'gapjil' (abuse of power). Last month, the FTC sent a decision letter containing corrective orders to Google, and plans to check if Google is properly implementing these orders.

[Image source=Reuters Yonhap News]

On the 16th, the Fair Trade Commission announced its plan to start compliance monitoring targeting Google based on this matter. At the end of last month, the FTC initiated enforcement of corrective measures by sending Google a final penalty of 42.1 billion KRW along with the decision letter containing the corrective orders, and will soon proceed with procedures to verify compliance.

As the dominant player in the Android app market, Google provided benefits such as app market featuring (exposure on main screens) and overseas marketing support to mobile game companies from June 2016 to April 2018 on the condition that they would not release games on competing app markets (One Store). This prevented One Store from attracting new games, thereby hindering competition in the app market.

The FTC imposed fines on Google for these actions and issued corrective orders requiring Google to amend contracts with domestic game companies. The core of the corrective orders is to revise developer distribution agreements so that domestic mobile game companies are not disadvantaged in featuring or overseas marketing support due to releasing games on competing app markets (such as One Store). Additionally, the orders require Google to establish an internal monitoring system related to fair trade in the domestic app market business and report the operation results to the FTC.

It is unusual for the FTC to publicly announce plans to begin compliance monitoring. An FTC official explained, “Google’s anti-market behavior was a very significant case that could negatively impact competition in the mobile platform ecosystem,” and added, “By announcing the compliance monitoring plan, the FTC expresses its determination to restore competitive order in the app market.”

Attention is also focused on whether Google will take further action following the formal delivery of the FTC’s decision letter. In April, Google stated, “We will decide on future responses after receiving the FTC’s written decision,” leaving open the possibility of litigation. The company can file an objection within 30 days from the date of delivery of the decision letter, and within 60 days can apply for a provisional injunction to suspend the effect of the corrective orders or file an administrative lawsuit to contest the sanctions. Google filed an administrative lawsuit related to the FTC’s investigation in 2021 (requesting cancellation of refusal to allow inspection and copying), but lost the case last year.

This content was produced with the assistance of AI translation services.