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South Korean fining Google

Google fined 150 million euros by South Korea for anti-competition practice in mobile OS market

South Korea’s antitrust regulator imposed a 207.4 billion won (150 million euros) fine on Google for pressing smartphone makers into only using its Android mobile operating system and ordered Google to ban its practice of forcing Android devices manufacturers to sign an anti-fragmentation agreement, the country’s national news agency YONHAP, announced.

Since 2016, the Korea Fair Trade Commission (KFTC) has been looking into Google over allegations it obstructed local smartphone makers, such as Samsung Electronics Co. and LG Electronics Inc., from using operating systems developed by rivals.

South Korea’s parliament recently approved a law that limits big tech’s possibility to force developers of games etc to charge customers via their stores’ built-in payment systems. The new legislation will allow developers to link to their own payment systems which limits the big tech stores to take a commission on the sales.

Google has hampered market competition by requiring smartphone makers to clinch an “anti-fragmentation agreement (AFA)” when they sign key contracts with Google over app store licenses and early access to OS, a practice that has helped Google ‘cement its market dominance in the mobile platform market and undermined innovation in the development of new OS for smart devices’, stated the South Korean regulator.

“We expect the latest measures will help set the stage for competition to revive in the mobile OS and app markets. This is also expected to help the launch of innovative goods and services in smart device markets,” the KFTC said.

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The tech giant said it plans to appeal the regulator’s decision.

“Android’s compatibility program has spurred incredible hardware and software innovation, and brought enormous success to Korean OEMs and developers,” Google said in a statement. “This in turn has led to greater choice, quality and a better user experience for Korean consumers.”

South Korea’s antitrust body is separately investigating three more cases related to Google’s alleged anti-competition activity: Google allegedly forced mobile game applications to be only released on its Play store; a probe is underway for Google’s unfair business practice over the sale of digital ads and lastly, whether Google’s new billing policy has harmed market competition.

 

Read Also:  Google's history of European fines

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