SOUTH Korea’s antitrust watchdog fined Google nearly $180 million (RM 747.180 million) today for abusing its dominance in the mobile operating systems and app markets, it said, the latest in a series of regulatory moves against tech giants around the world.

The penalty came weeks after South Korea passed a law banning major app store operators such as Google and Apple from forcing software developers to use their payment systems, effectively declaring their lucrative Play Store and App Store monopolies illegal.

Last week, a United States (US) judge ordered Apple to loosen control over its App Store payment system in an antitrust battle with Fortnite maker Epic Games.

Google and Apple dominate the online app market in South Korea, the world’s 12th largest economy and known for its technological prowess. 

The Korea Fair Trade Commission (KFTC) had been investigating Google since 2016 for allegedly preventing local smartphone makers such as Samsung Electronics from customising its Android OS.

It said Google hampered market competition through an “anti-fragmentation agreement” that prevents smartphone makers installing modified versions of Android, known as “Android forks”, on their devices.

“Because of this, device makers could not launch innovative products with new services. 

“As a result, Google could further cement its market dominance in the mobile OS market,” the KFTC added in a statement.

The commission fined Google 207.4 billion won (RM735.758 billion) and ordered the global tech giant to take corrective steps.

Google has maintained that its Play Store commissions charges are standard in the industry and fair compensation for providing developers with a safe marketplace.

The Play Store had revenues of almost 6 trillion won (RM21.286 trillion) in 2019, accounting for 63% of the country’s total, according to data from Seoul’s science ministry. – AFP, September 14, 2021.