Google Targeted by Antitrust Authorities Worldwide

Controversy over European Line since 2010
China also launches antitrust investigation
Recent issues with excessive app fees arise
Related law amendments pursued domestically

[Asia Economy Reporter Naju-seok] Competition authorities worldwide, including Europe and China, are closely monitoring whether Google is violating antitrust laws, in addition to the United States. There seems to be a consensus that Google is leveraging its dominant market position not only in PC online but also in the smartphone-centered mobile market to engage in monopolistic practices.

The European Union (EU) has been raising concerns about Google's monopoly since 2010. It judged that Google abused its dominant position by deliberately omitting competitors from search results. Based on this investigation, the EU filed antitrust charges against Google in 2015. In 2017, the EU accepted the findings of its competition authorities and imposed a fine of $2.7 billion (approximately 3.07 trillion KRW).

In 2018, Google's mobile operating system (OS) Android became an issue. The EU claimed that Google abused its monopoly by pressuring smartphone manufacturers using Android to set Google services (Google search engine, Chrome browser, Play Store, etc.) as defaults. The EU imposed a fine of $5.1 billion on Google for this issue. The EU criticized that "Android was used as a means to expand the market share of Google’s search engine."

In 2019, the EU also fined Google $1.7 billion for blocking advertising searches from companies using competing web browsers by exploiting its monopoly in the search market. It was alleged that Google controlled Google AdSense search ads in search functions on newspapers, travel sites, and others to limit competitors' ad exposure.

China is also reported to have launched an investigation into Google. According to major foreign media last month, Chinese competition authorities are preparing an antitrust investigation against Google, alleging that Google used its dominance over the Android smartphone OS to block competition. Reports indicate that China’s State Administration for Market Regulation accepted a complaint from telecommunications equipment maker Huawei and submitted the matter to the State Council’s Antitrust Commission.

Recently, excessive app fees have also become an issue. Google requires applications distributed through the Play Store to use Google's in-app payment system, which applies a 30% commission. Until now, only games were subject to the 30% fee, but starting next year, the fee will be extended to content and apps. This policy has faced global backlash. In particular, Epic Games, the maker of the popular game Fortnite, filed an antitrust lawsuit against Google.

In South Korea, legislation is being promoted to eradicate the abuse of power by app operators in response to such fee structures. The ruling and opposition parties are considering revising the Telecommunications Business Act to prohibit app market operators like Google from forcing specific payment methods or imposing unreasonable, discriminatory conditions or restrictions.

A government official said, "The whole world is attempting to regulate platform companies," adding, "Investigations are underway not only in the United States but also globally, including China." The official also said, "More cases of (platform regulation) will emerge not only in South Korea but also in many other countries abroad."