Google loses lawsuit to cancel 200 billion KRW Fair Trade Commission fine over forced OS installation

Google, which was fined over 200 billion won by the Korea Fair Trade Commission (KFTC) for forcing smartphone manufacturers to pre-install its operating system (OS), filed a lawsuit but lost.

A building at the Google campus in Mountain View, California, USA. [Image source=Yonhap News]

The Administrative Division 6-3 of the Seoul High Court (Presiding Judges Hong Seong-wook, Hwang Ui-dong, and Wi Gwang-ha) ruled on the 24th that Google lost the lawsuit seeking cancellation of the corrective order and fine imposed by the KFTC.

Earlier, in 2021, the KFTC issued a corrective order against Google for abusing its market-dominant position and engaging in unfair trade practices, imposing a fine of 224.9 billion won. In response, Google filed an administrative lawsuit against the KFTC in 2022 but was defeated.

The court stated, “Google, as a market-dominant business operator, prevented device manufacturers from installing competitors’ ‘fork OS’ or obstructed the release of devices equipped with fork OS developed directly by competitors, thereby hindering the innovative activities related to new smart device research and development (R&D) by device manufacturers.”

The court further ruled, “Due to Google’s actions, the launch of smart devices by device manufacturers was restricted, transactions with Google’s competitors were limited, and device manufacturers themselves faced restrictions in dealing with competitors, effectively blocking competitors’ market entry. Google’s conduct constitutes acts of disadvantageous treatment and exclusive dealing.”

The KFTC’s representative stated, “We expect this ruling to restore competitive pressure in the mobile OS and app market and to invigorate the previously controlled innovation competition. This decision serves as an opportunity to strictly punish anti-competitive behavior by platform operators monopolizing the app ecosystem.”

Appeals against KFTC’s dispositions are conducted through a two-tier system involving the Seoul High Court and the Supreme Court.

This content was produced with the assistance of AI translation services.