South Korea’s Fair Trade Commission (KFTC) on Wednesday initiated formal proceedings into Google’s alleged abuse of its dominant position in the Android app marketplace after serving the company with an examiner’s report recommending corrective measures and financial penalties. The report concludes that Google entered into agreements with major domestic and international game developers through its Games Velocity Program, under which the company subsidized the use of services such as Google Cloud, Google Ads and YouTube in exchange for developers giving Google Play preferential or at least equal treatment over rival app stores.

The KFTC examiner found that the agreements reduced