Operating System Android seems to be causing a lot of legal troubles for search engine giant Google. Not only does the OS entangle Google in patent wars but has now embroiled the company in an antitrust issue in South Korea. On Tuesday, Google offices in Seoul were raided by The Korean Fair Trade Commission at the behest of two Korean Internet Companies – NHN and Daum Communications, reported Bloomberg.
NHN, which operates the popular Naver search engine in Korea, and Daum Communications asked KFTC to investigate Google’s business practices regarding mobile search. They filed complaints against the largest Internet search company that it blocked local phone carriers and manufacturers from embedding their search applications in devices using the Android OS.
Reacting to the raid, Lois Kim, a Seoul-based spokeswoman for Google said, “We will work with KFTC to address any questions they may have about our business. Android is an open platform, and carrier and OEM partners are free to decide which applications and services to include on their Android phones. We do not require carriers or manufacturers to include Google Search or Google applications on Android-powered devices.”
Negating this, Seongnam-based NHN stated that under its marketing contracts, Google has banned South Korean phone manufacturers from including Web search applications made by other companies. It alleged that the California-based company has delayed certifying the use of its software for handset makers that violated the condition.
On the other hand, Duam Communications claims that it learned about Google’s practices while trying to have its applications installed and has evidence to prove the same.
According to Lee Chang Young, analyst Tong Yang Securities Inc, Duam and NHN, together, hold 90% of Web search share on computers in South Korea, and this indicates that they have a vested interest in ensuring that they can enable their products on mobile devices powered by Android. Google’s share is between 1 – 2%.
KFTC officials refused to comment citing that it was internal policy not to speak to the press about pending or ongoing investigations.
According to a research on units sales to end users by Gartner Inc., the Android OS used in HTC Corp’s Desire HD and Samsung’s Galaxy S, increased more than 9 times in 2010.
The International Data Corporation estimates that the Android OS is likely to become the world’s best selling smartphone system this year with an approximate 40% share surpassing Nokia’s Symbian which currently has about 21% share.
The IDC’s estimate is supported by an assessment by Park Jong Soo, analyst at Hanwha Securities Co., Seoul that as of March 31, about 70% of the more than 10 million smarphones sold in South Korea were Android-based devices.
This is not the first time that Korean authorities have had issues with Google. In May, Google’s Korean offices were raided by the authorities on suspicions that AdMob, Google’s mobile advertising unit had illegally collected personal location data without permission from the Korean Communication Commission.
Moreover, Google’s legal troubles are not limited to the Asian continent. In the US too Google is currently facing an antitrust debate and the Federal Trade Commission has been inquiring into its concerns about Google preventing mobile device makers using the Android operating system from also featuring services from Google’s competitors.
It would be interesting to note here that, in August, the Android Community had reported that officials in South Korea’s ministry announced that they would be developing their own open-source smartphone operating system to give local smartphone makers ‘competitiveness.’ Whether this has anything to do with Tuesday’s raids is anybody’s guess.