Google Fined IDR 2.5 Trillion For Banning Samsung And LG From Using Their Android OS

JAKARTA - Google has been fined 177 million US dollars or equivalent to IDR 2.5 trillion in South Korea for abusing its dominant market position to stop mobile phone manufacturers from using its Android operating system (OS).

According to a Bloomberg report cited by CNET, Wednesday, September 15, the Korean Fair Trade Commission (KFTC) said Google blocked device makers such as Samsung and LG from operating systems developed by its competitors, requiring manufacturers to sign anti-fragmentation agreements.

The regulator, which published its decision in Korea, barred Google from forcing device makers to sign this agreement and said existing ones should be modified, take corrective steps.

Android is the most widely used mobile OS in the world, supporting nearly nine out of every 10 smartphones shipped globally.

While the core of Android is open source, manufacturers must sign AFA for benefits such as early access to the operating system as well as access to the Google Play Store, an important part of the Android experience for most smartphone users.

The agreement prevents smartphone vendors from installing modified versions of the Android operating system, known as Android forks on their handsets. KFTC also alleges that Google's practices hinder innovation in the development of new operating systems for smartphones.

A Google spokesperson argued that the Android compatibility program has driven hardware and software innovation, and brought success to South Korean phone makers and developers.

“KFTC's decision released today ignores these benefits and will undermine the benefits consumers enjoy. Google intends to appeal the KFTC decision", a Google spokesperson told CNBC.