The Korea Fair Trade Commission (KFTC) is set to fine Google nearly $176.8 million for allegedly blocking smartphone makers like Samsung from using other operating systems.
Google said it would challenge the fine, accusing South Korean authorities of disregarding how its software policy benefits hardware partners and consumers. If applied, this fine would become one of South Korea's biggest antitrust penalties ever.
KFTC believes the U.S. giant, which has been under investigation since 2016, has hindered competition in the market by preventing smartphone makers from installing modified versions of Android on their devices.
"Because of this, smartphone manufacturers were unable to launch innovative products with new services, allowing Google to strengthen its dominant position in the mobile operating system market," the KFTC said in a statement.
This 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 in-app purchasing systems, becoming the first nation to adopt such regulations. These two U.S. giants have come under fire for taking up to 30% commission on app sales, as they dominate online application market in South Korea; a leading country in the sector of new technologies ranking 12th in world economy.
