Saturday, September 25, 2021
More

    Latest Posts

    Google fined $177m in South Korea for abusing market dominance

    Google LLC update

    South Korea’s antitrust regulators have fined Google Won207bn ($ 177 million) for abusing market dominance in the mobile operating system market, increasing regulatory pressure on domestic technology groups.

    The Korea Fair Trade Commission said on Tuesday that it was the first time South Korea had fined Google for anti-competitive business practices. But it’s the latest regulatory setback for Korean search groups, First country in the world To attack the lucrative fees charged by Google and Apple’s app stores.

    South Korea’s largest KFTC fine was imposed on tech companies around the world, and its remedial order was aimed at allowing local smartphone makers to customize Google’s Android mobile operating system.

    Regulators focused on the Internet group’s requirement for smartphone makers to sign an “anti-fragmentation agreement” as a prerequisite to an app store license agreement and access Google’s latest operating system in the process. He accused him of using his enormous bargaining power to curb competition. Development of smartphones.

    Under the AFA, device makers are prohibited from installing modified software called “Android Forks” on their mobile phones, smartwatches and smart TVs. According to KFTC, this practice helped Google consolidate its dominant position in the mobile operating system market. Google powers about 70% of smartphones around the world.

    According to KFTC, Amazon and Alibaba have failed to expand their mobile operating system business due to Google’s stance, and Korean device makers Samsung Electronics and LG Electronics are struggling to launch smartwatches and speakers that run on Android forks, respectively. I did.

    KFTC is also investigating allegations of three anti-competitive practices at Google, including limiting competition in the Play Store app market. In-app purchase And in that advertising market.

    Mobile phone users in South Korea this month Pay software developers Directly to the app, bypassing the fees charged by app store operators such as Google and Apple. The law came into effect on Tuesday.

    “This is not a one-off issue,” said Wi Jong-hyun, a professor of business strategy at Chuo University in Seoul.

    Google planned to appeal the KFTC decision.

    “The Android compatibility program has spurred tremendous innovation in hardware and software, and has brought great success to Korean OEMs. [original equipment manufacturers] “Developer,” Google said in a statement. “The KFTC decision announced today ignores these benefits and undermines the benefits consumers are enjoying.”

    South Korean regulators have said they will enforce domestic antitrust laws against domestic platform operators and foreign companies to prevent anti-competitive business practices.

    Cacao, neighbor, Coupang It was also put under scrutiny as regulators and lawmakers warned Internet companies to abuse their growing power.

    Investors are worried that these warnings could allow South Korean regulators to follow China’s corresponding regulatory model, which has been cracked down for months, so companies have been in the last few weeks. It pushed down the stock price. Wipe over $ 1tn Turn off the value of the country’s largest tech group.

    Chanley, managing partner of Petra Capital Management, a Seoul-based hedge fund, said: “But Seoul’s regulations on this sector will still be much weaker than China.”

    #techFT Daily Newsletter

    #techFT provides news, comments, and analysis on the big companies, technologies, and issues that shape this fastest sector move from specialists based around the world. click here Get #techFT in your inbox.

    Google fined $177m in South Korea for abusing market dominance Source link Google fined $177m in South Korea for abusing market dominance

    Latest Posts

    Don't Miss

    Stay in touch

    To be updated with all the latest news, offers and special announcements.