The Korea Fair Trade Commission fined Google KRW 207.4 billion (USD 177 million) for preventing mobile device makers such as Samsung from developing their own versions of the Android operating system. The regulator said Google's actions constituted an abuse of its dominant position, preventing the market entry and development of competing OS.
The KFTC has been investigating the allegations against Google since 2016. It found that Google made smartphone manufacturers sign an "anti-fragmentation agreement" as part of their contracts with Google for access to the Android OS and Play store software, Yonhap news agency reports. This meant they could not develop or install their own 'Android forks' on the phones.
The anti-competitive practice strengthened Google's dominance of the market, giving it a 97.7 percent share of the mobile OS market in 2019.
In addition to the fine, the KFTC ordered Google LLC, Google Asia Pacific and Google Korea to take corrective steps. Google must stop forcing Android device manufacturers to sign the AFA and correct details about the AFA before reporting them to the commission.
Google said it would appeal the decision. In a statement, the company said the regulator's decision "ignored the benefits" brought to Korean OEMs and developers, which "in turn has led to greater choice, quality and a better user experience for Korean consumers".
Google received a fine of EUR 4.3 billion for similar offences in the EU in 2018 and later agreed to change its licensing terms for phone manufacturers. The company is appealing this fine as well, with hearings expected to start later this month.
