The Korea Fair Trade Commission (KFTC) has fined Google in South Korea $177 million.
It accuses the tech giant of using its dominant market position to hinder the development of Android rivals. According to Yonhap News, the KFTC has ruled that the anti-fragmentation agreement that Google requires from smartphone manufacturers such as Samsung and LG makes competition more difficult. This agreement prevents device makers from installing individually modified versions of the Android operating system, known as “Android forks,” on their phones.
Investigations since 2016
The antitrust authority has been investigating since 2016 whether the agreement stifles competition. In addition to imposing the fine on Google, the Commission also banned Google from forcing manufacturers to sign anti-fragmentation agreements and modify existing ones. For Google, the fine is the second setback in a very short period of time.
It was only on Monday that a law came into force in South Korea that is directed against the dominance of Google and Apple in the app sector. The two store operators are no longer allowed to dictate certain payment systems to app developers. Apple and Google are losing control of a lucrative business. So far, both have collected up to 30 percent of the developers' sales (press release reported: http://pte.com/news/20210901019 ). Companies such as the game provider Epic Games are already suing in the USA.
Google is appealing
Google said in a statement to Bloomberg and CNBC that Android and its compatibility program have accelerated innovation and improved the user experience, benefiting smartphone manufacturers worldwide. The KFTC's decision ignores these benefits, which also benefit consumers. Google intends to appeal the KFTC decision.
Source: pte
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