South Korea's Fair Trade Commission has just announced its intention to file a lawsuit against Google for allegedly preventing smartphone creators such as Samsung and LG from using other operating systems. If it wins, Google will be fined US$ 177 million.
Google has said it plans to challenge the fine, accusing South Korean authorities of ignoring the benefits of the contracts on the consumers and partners.
Some of these benefits include "incredible hardware and software innovation," which "brought enormous success to Korean OEMs (original equipment manufacturers) and developers," a Google spokesperson said in an email to the Washington Examiner.
"This in turn has led to greater choice, quality and a better user experience for Korean consumers," the spokesperson continued. "KFTC’s decision released today ignores these benefits, and will undermine the advantages enjoyed by consumers. Google intends to appeal the KFTC’s decision."
South Korea is known for scrutinizing how foreign technology companies behave in the market. Because both Google's and Apple's products dominate in the field of technology, they have been South Korea's primary focus. Authorities have promised to prevent both companies from abusing their positions within the country's marketplace.
Google requires device manufacturers to sign anti-fragmentation agreements that prohibit the companies from installing modified versions of Google's operating system in smartphones. Joh Sung-wook, chairwoman of South Korea’s FTC, said it will ban Google from requiring the manufacturers to sign the agreement.
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