Google hit with US lawsuit by Korean publishers, app developer

By Mike Scarcella

June 4 (Reuters) - Two Korean publishing groups and a Korean app developer have sued Google in U.S. court, accusing the Alphabet GOOGL.O unit of illegally monopolizing Android app distribution and payment processing and causing them to pay overcharges.

Korean Publishers Association, Korea Electronic Publishing Association and PangSky Co Ltd filed the proposed class action on Tuesday in federal court in San Francisco, California, alleging violations of U.S. antitrust law.

The lawsuit said Google was imposing an artificially high service fee through Google Play’s billing system on paid applications and on transactions within apps for digital content.

“Google’s abusive behavior restricts Android app developers’ ability to choose different avenues of app distribution and in-app payment processing,” according to the lawsuit.

The plaintiffs said Google’s “entrenched monopoly” was prohibiting rivals from establishing their own app stores to compete on price, and to give consumers more avenues to purchase digital content.

Google and lawyers for the plaintiffs did not immediately respond to requests for comment.

The lawsuit seeks class action status for individuals and businesses in the United States that sold Android apps inside the Play store to U.S. purchasers from June 2021.

The plaintiffs also are seeking to form a class comprising entities in Korea that sold Android apps to buyers anywhere in the world.

A South Korean law in 2021 banned app store operators including Apple and Google from forcing software developers to use their payment systems. Still, the lawsuit said, Google imposes restrictions on alternative billing to punish developers that choose to offer that feature.

Google is separately battling a U.S. court order in a lawsuit filed by “Fornite” maker Epic Games that would open up the Play store to greater competition. Google’s appeal is pending in the 9th U.S. Circuit Court of Appeals in San Francisco.

In 2021, Google agreed to pay $90 million to settle antitrust claims from small U.S.-based Android app developers.

Google faces other antitrust lawsuits challenging key business practices, including search and advertising. It has denied any wrongdoing in those lawsuits, and in the other cases.

The case is Korean Publishers Association v. Google, U.S. District Court, Northern District of California, No. 3:25-cv-04686.

For plaintiffs: Scott Martin, Kyle Bates and Christopher Lebsock of Hausfeld; YoungKi Rhee of We the People Law Group; and Byung-Joo Lee of Jihyang Law Firm

For defendant: No appearance yet

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