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Korea Fair Trade Commission Raids Google.  Again.

Google is in hot water in South Korea again.  —  The Korea Fair Trade Commission (KFTC) raided Google's offices in Seoul on Monday, people familiar with the matter say.  This is the second time the agency has busted …

AllThingsD John Paczkowski

Context & Ripple Effects

This raid has a paper trail. In late April 2012, Google disclosed it was being investigated by competition authorities in both Argentina and South Korea (an inquiry it confirmed publicly), and the KFTC's Monday search of the Seoul offices converts that disclosure into an active enforcement step. It also repeats history: back in August 2010, South Korean police raided the same offices (the earlier raid) during the global sweep over Street View's collection of Wi-Fi payload data.

First-order effects

  • Google's Korean operations are now under formal antitrust examination by the KFTC for the second time, with investigators physically seizing materials from the Seoul offices — a step beyond document requests that signals the agency intends to build a case, not just ask questions.

Second-order effects

  • Korean handset makers, game publishers, and app developers whose commercial terms with Google fall under scrutiny gain leverage to raise grievances with the regulator, since an active file makes their complaints actionable; rival platforms and local competitors can lobby the same open docket.

Third-order effects

  • If the KFTC follows its raid with findings and remedies, South Korea cements its role as an early testing ground for how competition law applies to mobile-platform gatekeepers — a template other Asian regulators could copy when examining default-placement and exclusivity terms.

The trend: Competition authorities are moving from one-off raids on Google toward sustained, conduct-specific antitrust cases against dominant mobile ecosystems.