$180 million fine against Google

South Korea’s competition regulator has fined Google nearly $180 million for abusing its dominance in the mobile app and operating system market.

This measure would “prejudice the benefits that consumers benefit from,” according to Google, which intends to appeal the decision, according to the Yonhap news agency.

stop monopoly

This decision comes two weeks after Seoul adopted a law prohibiting (Apple) and (Google) from obligating application developers to use their payment systems, according to which the monopoly exercised in (App Store) and “Play Store” was considered in violation of the legislation in force in this regard.

The two American giants are facing criticism, especially a commission of up to 30% of app sales.

innovative products

A US judge last week asked (Apple) to stop imposing its payment system on application developers, in the context of the ongoing dispute between it and the American video game company, Epic Games.

Since 2016, the Korea Competition Authority (KFTC) has investigated Google’s practices, which are accused of preventing domestic smartphone manufacturers, led by Samsung, from developing the Android operating system.

And it considered that (Google) undermined competition in the market through an agreement that prevents smart phone manufacturers from making modifications to the “Android” system adopted in their devices.

“Because of this agreement, smartphone manufacturers were unable to launch innovative products with new services, which allowed Google to consolidate its dominance in the mobile operating system market,” a statement from KFTC said. The authority imposed on the American giant a fine of $ 176.8 million, and demanded that it take measures to rectify the situation.

common practice

For its part, Google indicated that deducting commissions is a prevalent practice in the sector that allows to offset the expenses of creating secure platforms that allow developers to communicate with users from all over the world.


About the author

Leave a Reply

Your email address will not be published. Required fields are marked *