Google fined in South Korea for abusing its dominant position

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Sept 14, 2021: A South Korean antitrust regulator has fined Google Alphabet Inc. $176.64 million for blocking customized versions of its Android operating system in less than a month.

This is another blow to the technology giant. The Korea Fair Trade Commission (KFTC) said on Tuesday that terms with device makers amounted to an abuse of Google’s dominant market position, which limited competition in the mobile OS market. Google’s mobile operating system powers more than 80% of smartphones worldwide.

Google said in a statement that it intends to appeal. He said that this decision ignores the benefits of compatibility of Android with other programs and undermines the benefits of users.

The fine, one of the highest in the country for market misuse, comes on the heels of an amendment to South Korea’s Telecommunications Business Act – known as the “Anti-Google Law”. The law now prohibits app store operators such as Google from requiring software developers to use their own payment systems – a condition that effectively prevents developers from charging commissions for in-app purchases.

KFTC said Google had barred device producers from complying with the “Anti-Fragmentation Agreement (AFA)” when signing key agreements regarding the App Store license.

Under the AFA, manufacturers could not equip their handsets with a modified version of Android, called “Android Forks”. KFTC said it has helped Google strengthen its market share in the mobile OS market. The Watchdog forbade Google from forcing manufacturers to sign AFA agreements and ordered them to amend existing agreements.

KFTC’s new initiatives are aimed at increasing competition for companies to build so-called Android Forks without fear of penalties from Google. The regulator said the fine could be the ninth largest.

Korean regulators have stepped up testing of tech giants this year, including local players.

The Coca-Cola Group of Companies lost more than $16 billion in market value at one point this month when prominent lawmakers called the country’s largest messaging and social media service a “symbol of greed.”

Consumer protection has been the focus of measures designed to curb the market control powers of the largest companies, especially in development areas such as fintech services.

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