South Korea Fines Google KRW207.4 Billion Over Android Dominance Abuse

South Korea recently passed its Anti-Google Law, which goes into effect today, 14 September 2021. Tangentially related is another fine the country is laying on the internet search giant which amounts to KRW207.4 billion (~RM735 million). This is allegedly because of the company’s abuse of the dominance of its Android mobile operating system.

The Korea Fair Trade Commission said that Google’s anti-fragmentation agreements (AFA) with phone makers prevents them from developing or using modified versions of Android. In addition to the fine, the commission also banned Google from making manufacturers sign new AFA contracts, and making it modify existing ones.

These moves are reportedly intended to spur competition by letting companies create more forks of Android. This then would allow each brand to modify the mobile OS to “target different device classes or use cases” without Google retaliating. Google, naturally, will be appealing the decision, saying that the ruling “will undermine the advantages enjoyed by consumers”.

All things considered though, it remains to be seen if this is really enough for there to be any real change to the status quo, at least on the mobile phone front. Things may be different on the smart TV or wearable sides of the market.

China Fines Alibaba For RM11.5 Billion Over Monopolistic Behaviour

China’s authorities have issued a CNY 18.23 billion (~RM11.5 billion) fine to Alibaba over what they consider a monopolistic practice. Beijing had initiated an anti-monopoly investigation into Alibaba in December last year – notably after company founder Jack Ma became persona non grata in government circles.

State regulators zeroed on an Alibaba practice that forces merchants to choose between two platforms, rather than being allowed to work with both, CNBC reported. The government said that the policy allowed the firm to extend its market dominance and obtain unfair competitive advantages.

The report further stated that China’s State Administration for Market Regulation (SAMR) declared that the policy “infringes on the businesses of merchants on the platforms and the legitimate rights and interests of consumers.”

In addition to the fine, regulators ordered the company to file self-examination and compliance reports to them for three years. The fine is roughly equivalent to 4% of Alibaba’s 2019 revenue.

Alibaba publicly signalled acceptance of the penalty and that it would comply with the regulators’ demands, saying that it wouldn’t have achieved growth “without sound government regulation and service.”

The company along with sister firm Ant Group have weathered considerable scrutiny from the Chinese government ever since their founder, Jack Ma, made critical remarks about the country’s regulatory system. Ma has largely stayed out of public view, only resurfacing briefly in January to address a group of teachers.