Google investigated for practice against Samsung

Google is facing an anti-competitive investigation into whether it obstructed Samsung Electronics' development of its own operating system (OS) to replace the U.S. tech giant's Android OS, according to the Fair Trade Commission (FTC), Monday.

                                                     

"We are currently checking if Google thwarted competition in the OS market," an FTC official said.

The FTC has also submitted relevant documents to Rep. Jeon Hae-cheol of the main opposition Democratic Party of Korea (DPK).

The market share for Android in Korea's mobile market accounts for more than 80 percent as of the end of January.

In 2011, the California-based firm and Samsung struck the Mobile Application Distribution Agreement (MADA) that required Android handsets to preset Google as a default search engine and preinstall its applications and services such as YouTube and Gmail on their home screens.

In addition, they also reached the anti-fragmentation agreement (AFA) stipulating that Samsung was not allowed to develop a new OS using Google's algorithms.

At the time, the nation's top two search engines Naver and Daum complained about MADA and the FTC investigated Google Korea to see if the preloading requirements violated the Antitrust Law. In 2013, Google was cleared after the antitrust body found the two Korean firms' market shares were not affected.

However, the FTC launched its probe into the AFA last May and found suspicious circumstances hinting at Google's obstruction of Samsung's OS development.

The FTC also said it is reviewing the need to reinvestigate the 2013 case, citing the changing situation in the market.

"As lawmakers have demanded a reinvestigation of the case, the FTC is checking whether it is possible to do so," the FTC official said.

A Google Korea spokesman said, "Android is an open source platform. Our partner agreements are entirely voluntary — anyone can use Android without Google.

"The Android OS can be downloaded for free. It can be modified and used to build a phone. Many companies have used Android's source code as the starting point for their own operating systems."

Google is not a stranger to being accused of antitrust practices.

In August 2016, the Russian government fined Google $6.75 million for competition violations, while the EU reached its preliminary view last April year that the company has, in breach of EU antitrust rules, abused its dominant position by imposing restrictions on Android device manufacturers and mobile network operators.

"The FTC needs to carry out an across-the-board investigation into any anti-competitive acts Google may have done to rival companies and take necessary measures," the MPK lawmaker said.