KFTC ACCUSES GOOGLE; MAXIMUM FINE MIGHT BE IMPOSED

Google might have started the new year with positiveness, but it cannot be left out of the problems it has to face. They ended the last year with an unexpected ruling in France, which saw the search engine giant shelling out $65,000. But that was not all. Recently, the Korea Fair Trade Commission (KFTC) accused Google of obstructing its investigations into the company’s alleged anticompetitive practice of making smartphone makers favor its search engine on Android-powered devices. the Commission is planning to impose the maximum fine on the Web giant.

Noting the details of a recent report by South Korean news agency Hankook Ilbo, it was clarified that the search engine giant had “methodically” interfered with the agency’s inquisition by deleting files from its computers and instructing its employees to work from home when officials raided the office last September.

The chairman of the KFTC, Kim Dong-Soo, added that the Commission might opt for an option to impose the maximum fine of 200 million Korean won (US$171, 800) on Google Inc. for hindering its work.

The claims in the report even noted that Google has been pressurizing a number of smartphone makers to favor its search engine over alternatives like Daum and Naver. Basically, these smartphone makers have Android mobile operating system (OS) running on their devices. this is a negative act from Google, as it could lead to consumers preferring Google’s services, as by default, instead of them opting for the service.

Notably, the raid came as a result of complaints lodged by the expected local favorites, such as Korean companies NHN, which operates Naver, and Daum Communications last April.

Google, on its part stated that the company was willing to work with the KFTC, in regards to addressing any question it has about the company. the same was noted in an earlier report.

Google, has seen Korean aggression against the company, and might know it well, what the Commission can do, to break the strong hold, Google has in Korea.

The claim seems to be effective enough to note an action against Google. It has been noted that NHN/Naver and Daum, together have a strong hold on the search market, as they control approximately 90 percent of the South Korean PC search market. Google, on the other hand has a mere 5 percent share in this case.

Interestingly, Android seems to have boosted Google’s presence in South Korea, as about 70 percent of the smartphones sold in South Korea are running on Android. In this situation, if Google pressurizes manufacturers to make use of Google as default, Google’s search share is bound to increase.

With no surprise, Google’s premier Android partner is the South Korean Electronics giant, Samsung, with others falling in the same line. Google, with the same is on its way to dominate the global scene.