Struggle for Control
As more and more people are using mobile devices instead of PCs to access the Internet, Google is consolidating the runner-up position in the Korean mobile search market.
Experts are saying that Google's influence is expanding in the local mobile search market, as shown by the fact that the number of local Internet users who visited Google's homepage through mobile devices reportedly surpassed the figure for Naver. Therefore, much attention is being paid to whether or not Google's growing influence will lead to controversy over the pre-installation of apps.
According to market research firm Nielsen Korean Click and industry sources on June 2, Google comprised 10.7 percent of the local mobile search market in Dec. last year. After overtaking Daum Kakao, its share continued to grow until last April, thereby maintaining the runner-up spot for the fifth consecutive month. Google accounted for 13.9 percent of the market in the third week of May, successfully remaining in second place by beating Daum Kakao with an 11.4 percent.
Google's share amounted to 11.8 percent in Jan. this year, 14.0 percent in Feb., and 15.1 percent in March, reacing a new milestone. The search giant made up 14.6 percent of the market in April, widening the gap with Daum Kakao in the market, which had a share at the level of 11 to 12 percent.
The figure is about the traffic calculated only by mobile web visits, and thus when mobile searches through apps are included, Google's actual share is likely to be significant.
The number of people who visit google.co.kr and goolge.com via mobile devices is said to exceed that of Naver.
The web search giant's influence is still minimal in the local search market using PCs and mobile devices. However, considering the growing influence of mobile devices in Internet access, many in the industry point out that an increase in Google's share of the mobile search market is noticeable.
With Google's growing influence in the local mobile search market, industry analysts are saying that the app pre-installation controversy can come to the fore again.
In the past, there was controversy at home and abroad surrounding pre-installing apps on mobile devices using Google's market domination. However, the Korea Fair Trade Commission hasn't imposed sanctions on Google, on the grounds that its share of the local search market is low. The country’s anti-trust regulator says that Google represents the vast majority of the European search market, but its share of the local market stands at merely the 10 percent level.
Nevertheless, the industry is keeping a close eye on the unfolding situation. An industry source said, “Google's share of the search market is probably much bigger than what we think,” adding, “Local Internet companies should try hard to increase their shares. But we also need to pay close attention to the expansion of Google's share, which holds a dominant position in the market.”