Korean antitrust watchdog investigates abuse of power Google Android

The South Korean competition watchdog is investigating whether Google is abusing its economic dominant position to limit competition for Android. It is being investigated whether Google prevented Samsung from developing its own smartphone operating system Tizen.

The South Korean Fair Trade Commission recently informed the South Korean parliament that it would re-examine Google’s restriction of competition, a newspaper in the country reported. In 2011, the committee already investigated complaints from two South Korean search portals: Naver and Daum.

They complained that by entering into the mobile application distribution agreement with Samsung, Google actually forced smartphone makers to pre-install Google mobile apps on new smartphones. This also included Google’s Chrome app. In return, Samsung would be allowed to use Android for free. After a two-year investigation, the antitrust authority concluded that there was no evidence of antitrust violations and that smartphone makers installed the Google apps based on customer needs. The effects of the agreement would also be limited, because Naver controlled 70 percent of the South Korean search market at the time.

When the mobile application distribution agreement was later leaked, voices were again raised to investigate Google. The agreement stated that Samsung committed to loading twelve Google mobile apps on mobile phones on the main screen. Samsung also appeared to have committed itself not to develop a new operating system via Android algorithms. In the South Korean parliament, a member of the opposition called for a new investigation. Commissioner Chung Jae-chan of the antitrust authority said in response to this call. In addition, the committee member said that it was difficult in the previous investigation to prove that Google actually forced smartphone makers such as Samsung to sign the agreement.

Should the Fair Trade Commission conclude that Google is guilty of restricting competition, the Commission can force Google to change its policy. A fine may also follow. In December, the Korean antitrust authority fined chipmaker Qualcomm in the amount of more than eight hundred million euros.

The European Commission launched an investigation into Google in 2016 based on the suspicion that Google is restricting competition in the mobile market due to the dominance of Android. The company faces a fine of three billion euros in this matter. A document would show that the European Commission wants Google to stop offering financial incentives to smartphone makers as a reward for providing Google apps.