Apple and Alphabet’s Google have been asked to turn in by mid-October compliance plans for a new South Korean law that bans major app store operators from forcing software developers to use their payment systems, a regulatory official said on Wednesday.
South Korea’s Korea Communications Commission is all set to roll out an enforcement ordinance to accompany the amendment to the Telecommunications Business Act of the country. Most clauses of the new law came into effect around mid-September. The ordinance will probably be drafted within the next six months or even earlier, according to a regulatory official.
This news comes even after the Asian country had slammed Google with a fine worth 207.4 billion Korean won ($176.9 million) earlier this month, accusing it of misusing its dominant position in the mobile operating system market to indulge in anti-competitive practices.
The US-based tech giant has been accused of blocking smartphone makers from using operating systems that are developed by its rivals, by forcing them into anti-fragmentation agreements (AFAs). The contracts apparently pertain to app store licenses, along with early access to the operating system, and prevents device manufacturers from installing modified versions of Android on their models.
Issuing the fine, the Korea Fair Trade Commission (KTFC) has alleged that Google “stifled innovation” through its questionable practices, and preventing new operating systems from being developed. In its ruling, the watchdog has demanded that the company stop trying to force companies into signing AFAs, while also directing it to take corrective measures.
A spokesperson for the firm has said that Google has actually put in efforts to increase innovation in hardware and software development through its compatibility programme, contrary to what the authority has alleged. Issuing a statement to the effect, the spokesperson has said the KFTC has completely ignored the benefits of the company’s efforts, something that “will undermine the advantages enjoyed by the consumers,” while adding that the firm is seeking to appeal to the watchdog to repeal its decision.
At the same time, one may note that the fine which has been issued is quite measly as compared to Google parent Alphabet’s quarterly earnings, which stand at a whopping $61.88 billion.
