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Seoul Journal of Economics - Vol. 37 , No. 1
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Seoul Journal of Economics - Vol. 37, No. 1, pp. 37-54
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 28 Feb 2024
Received 15 Jan 2024 Accepted 17 Jan 2024
DOI: https://doi.org/10.22904/sje.2024.37.1.002

Abuse of Dominance in Digital Markets: The Korea Fair Trade Commission’s Google Play Store Decision
Hwa Ryung Lee
Director, Economic Analysis Division, Cartel Investigation Bureau, Korea Fair Trade Commission, 95 Dasom3-ro, Sejong-si, Korea, Tel: +82 44 200 4551 (hwaryunglee@korea.kr)

JEL Classification: K0, L4

Abstract

This paper introduces the decision rendered by the Korea Fair Trade Commission regarding the Google Play Store Case in April 2023. Google Play Store dominates the market for Android-based app stores both domestically and globally. Upon the launch of One Store, an integrated app store of three mobile carriers and Korea’s leading search engine Naver, Google devised a strategy aimed at securing exclusive release of games. The Commission determined that Google’s action that limits multi-homing constitutes anticompetitive behavior, resulting in the exclusion of One Store from the competitive landscape.

Keywords: Abuse of dominance, Exclusive dealing, Multi-homing, Online platform
Acknowledgments

The paper contains only public information regarding the case based on the KFTC press release (2023. 4. 12.) and the KFTC written resolution (No. 2023-103) (Case No. 2020지감 1764). The views expressed are those of the author and not of the KFTC.

References
1. KFTC, Online Platform Abuse of Dominance Review Guideline, Korea Fair Trade Commission, 2023.
2. KFTC, KFTC Publishes the Online Platform Abuse of Dominance Review Guideline, KFTC Press Release, January 12th, 2023. (in Korean)
3. KFTC, KFTC Imposes Sanctions on Google for Forcing Apps to Release Exclusively on Its Own App Store, KFTC Press Release, April 11th, 2023. (in Korean)
4. KFTC, Google’s abuse of dominance in relation to app stores (Case No. 2020지감 1764), KFTC Decision, No. 2023-103, July 20th, 2023. (in Korean)
5. Rasmussen, E. B., Ramseyer, J. M., and Wiley, J. S., Jr., “Naked Exclusion.” The American Economic Review 81(No. 5 1991): 1137-1145.
6. Segal, I. R. and Whinston, M. D., “Naked Exclusion: Comment.” The American Economic Review 91(No. 1 2000): 296-309.
 

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