Original title: war against giants, South Korea's "anti Google law" officially implemented
On September 14, the amendment to the South Korean telecommunications business law, known as the "anti Google law", was officially implemented. On the same day, the South Korean antitrust regulator issued a ticket of 207 billion won (US $166.4 million) to Google's parent company, alphabet.
According to Yonhap news, the amendment to South Korea's telecommunications business law officially came into force on September 14. The South Korean parliament voted to pass the amendment on August 31, and the State Council also considered and adopted the bill on August 7.
Wall Street has previously mentioned that the bill prohibits mobile app operators from forcing app developers to use their designated payment system. This requirement effectively prevents developers from charging commissions from internal purchases of applications. As a result, South Korea has fired its first shot at antitrust in the field of APP payment.
According to Reuters, due to Google blocking the customized version of its Android operating system, the South Korean Fair Trade Commission (kftc) has fined Google's parent company alphabet $166.4 million. The ticket was issued on the day when the "anti Google law" came into effect. It is also the second setback of the American technology giant in South Korea in less than a month.
Kftc said this could be its ninth largest ticket ever.
Kftc also said that Google requires device manufacturers to abide by the "anti fragmentation agreement" (AFA) when signing key contracts with it on App Store licensing. Under this provision, manufacturers cannot install an improved version of Android on their mobile phones, which helps Google consolidate its dominant position in the mobile operating system market and hinders competition in the mobile operating system market in South Korea.
For example, Samsung launched a smart watch with a customized operating system in 2013, but after Google believed that the move violated AFA regulations, Samsung turned to another operating system.
According to the ruling, Google was prohibited from forcing device manufacturers to sign AFA contracts to allow manufacturers to adopt a modified version of the Android operating system on their devices.
Google said in a statement that it intended to appeal the ruling, saying it ignored the benefits of Android compatibility with other programs and undermined the advantages enjoyed by consumers.
However, this is only the beginning. Globally, in addition to South Korea, many countries are also beginning to fight against giants. Last year, Indian antitrust authorities ordered an investigation into allegations that Google abused its market position to promote its payment application and forced application developers to use its in app payment system.
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