South Korea prepares to fine Google 124 million

(PTI) Seoul, Dt

South Korea's competition watchdog is set to impose a fine of 203.6 billion won (૭ 127 million) on Google for allegedly preventing smartphone makers like Samsung from using other operating systems. This is expected to be the largest anti-competition penalty in South Korea so far. However, Google plans to challenge the penalty.

Google said the South Korean authority did not take into account how much its software policy is benefiting hardware partners and customers. South Korea made the announcement on Tuesday after implementing an amended telecommunications law banning app market operators such as Google and Apple from forcing smartphone users to pay through their in-app purchase system. South Korea is the first country in the world to adopt such rules.

South Korea has always evaluated the behavior of foreign technology companies in its market. In recent years it has focused exclusively on companies such as Google and Apple, which are abusing their dominant market share in the mobile Internet. Joe Sung-wook, the female chairman of South Korea's Fair Trade Commission, said Google had undermined market competitiveness since 2011 by forcing its electronics partners to enter into "anti-fragmentation" agreements. The agreement prevented companies from installing their improved versions in Google's operating system on devices such as smartphones and smart watches. In this way Google strengthened its leadership in the mobile software and app market. Joe said manufacturers such as Samsung and LG had to abide by the terms when signing an agreement with Google for early access to computer codes or an App Store license.

However, Google said the FTC has overlooked Android's compatibility program, which defines the need for device manufacturers and developers to achieve compatibility with the operating system. It has promoted unprecedented hardware and software innovation and has been an extraordinary success for Korean OEMs and developers. Google will challenge KFTC's decision to fine it. Joe noted that the world's most popular Galaxy Android phone maker, like Samsung, suffered a major setback in 2015. This time Google forced Samsung to drop plans to use a customized version of Google software on its Galaxy Gear smartwatch.