South Korea to fine Google USD 177M for forcing software on devices

South Koreas competition watchdog plans to fine Google at least 2074 billion won USD 177 million for allegedly blocking smartphone makers like Samsung from using other operating systems in what would be one of the countrys biggest antitrust penalties everGoogle said it plans to challenge the fine It has accused South Korean authorities of disregarding how its software policy benefits hardware partners and consumersTuesdays announcement came as South Korea also began enforcing a revised telecommunications law that prohibits app market operators like Google and Apple from requiring smartphone users to pay with their inapp purchasing systems It is the first nation to adopt such regulationsSouth Korea has always closely scrutinized how foreign technology companies behave in its market Much of the focus in recent years has been on Google and Apple as officials vowed to prevent them from abusing their dominant market positions in mobile internetJoh Sungwook chairwoman of South Koreas Fair Trade Commission said Google has hampered competition since 2011 by obligating its electronics partners to sign antifragmentation agreements This has prevented the companies from installing modified versions of Googles operating systems on devices like smartphones and smartwatchesAlso read Google adds dark mode feature to search on desktopThat gave Google an easy way to cement its leadership in mobile software and app markets she saidJoh said manufacturers like Samsung and LG had to agree to the terms when signing contracts with Google for app store licensing or early access to computer codes so that they could build devices in advance before Google released new versions of its Android and other operating systemsIn an emailed statement Google said the FTC is ignoring how Androids compatibility program which defines the requirements for device makers and developers to achieve compatibility with the operating system has spurred iquestincredible hardware and software innovation and brought enormous success to Korean OEMs original equipment manufacturers and developersiquestThis in turn has led to greater choice quality and a better user experience for Korean consumers Google saidKFTCs decision released today ignores these benefits and will undermine the advantages enjoyed by consumers Google intends to appeal the KFTCs decision Joh pointed out that Samsung the maker of the globally popular Galaxy Android phones suffered a huge setback in 2013 when Google forced it to abort its plans to use a customized version of Google software on its Galaxy Gear smartwatchesSamsung switched to a littleknown operating system called Tizen but gave up on the software after struggling with a lack of applications The companys new smartwatches are now powered by Googles Wear OS LG was also thwarted from releasing smart speakers based on customized Google softwareThe fine announced for Google would be the ninth largest the FTC has ever imposed The company may end up paying even moreKim Minjeong another FTC official said the amount announced by her commission was tentative based on the revenue Google generated in South Korea from 2011 to April this year She said the finalized fine which could be announced in October or November might be slightly higherWe will ban Google from requiring device manufacturers to sign antifragmentation agreements in relation to business contracts regarding Play Store licensing and early access to operating systems Joh said in a news conferenceOur corrective measures will allow domestic device manufacturers to release fork devices in the domestic and foreign markets and foreign manufacturers to release fork devices in the domestic market she said referring to devices powered by customized operating systemsThe FTC began examining the case in 2016 and is conducting other investigations of Google including its behaviour in mobile applications and advertising marketsEarlier Tuesday the Korea Communications Commission the countrys telecommunications regulator said a revised telecommunications law prohibiting Google and Apple from requiring developers to use their inapp purchasing systems has taken effectThe tech giants face global criticism over forcing developers to use inapp purchasing systems for which the companies receive commissions of up to 30 per centThe companies say the commissions help pay for the cost of maintaining the app marketsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever