Your browser does not support the PubReader view.
Go to this page to see a list of supporting browsers.
Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 37, No. 1, pp.37-54
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

  • KFTC, Online Platform Abuse of Dominance Review Guideline, Korea Fair Trade Commission, 2023.
  • KFTC, KFTC Publishes the Online Platform Abuse of Dominance Review Guideline, KFTC Press Release, January 12th, 2023. (in Korean)
  • 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)
  • 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)
  • Rasmussen, E. B., Ramseyer, J. M., and Wiley, J. S., Jr., “Naked Exclusion.” The American Economic Review 81(No. 5 1991): 1137-1145.
  • Segal, I. R. and Whinston, M. D., “Naked Exclusion: Comment.” The American Economic Review 91(No. 1 2000): 296-309. [https://doi.org/10.1257/aer.90.1.296]