Time consuming re-investigation on ‘Google preload app’…Monitoring level at a standstill
Kim Soo Yeon | newsnews@ | 2017-04-20 09:22:09
Questions are raised on investigation plan of Fair Trade Commission (FTC) on ‘Mobile preload app’ of Google.
According to industry sources, on April 19, although the FTC entered re-investigation on Google, which was in danger of being fined for KRW trillion in Europe due to unfair practices such as ‘app pre-loading’, the re-investigation is now proceeded in simple monitoring level.
Industry experts point out that stronger investigation shall take place by special investigation team.
Korean portal companies such as Naver and Daum reported that Google had been forced to install Android OS (OS) to smartphone makers so that users can not delete Google app from smartphone as a violation of the Fair Trade Act in 2011.
However, the FTC concluded in 2013 that there was no objection. Last year, Chung Jae Chan, chairperson of FTC revealed to re-investigate Google as the contents of the unfair mobile app distribution agreement (MADA), which is a contract between smartphone maker and Google, was disclosed at that time.
MADA specifies that Google should be set as the default search engine on phones and specify the location of the Google app, and provide the Android OS free of charge on the condition that the Google essential app is loaded at once. Samsung Electronics and other smartphone makers signed an agreement that they are not able to develop a new OS by using Android algorithm.
Currently, the FTC is reviewing related cases through the Knowledge Industry Monitoring Division, which has newly been established in December last year. The Ministry of Knowledge Industry Surveillance department has explained that seven people are employed to monitor the domestic and overseas situation.
However, it is not possible to investigate on the preload apps installed on Google`s line, only by the knowledge industry monitoring department as the department takes care of the ICT patents and intellectual property disputes related to the overall investigation. That`s why criticism has been raised toward the FTC as the Commission seems to just pretend to investigate Google but in reality it is not working on investigation.
The FTC has been hesitant to investigate the fact that it is due to the possible burden of enormous lawsuit costs in the case of a domestic company does not cooperate with the head office of a multinational corporation.
It is also observed that the FTC`s re-examination of Google is likely to be delayed depending on the progress of the EU-Google dispute progress.
As the European Commission (EC) ruling that Microsoft violated the antitrust laws by interrupting its Web browser in the past, the FTC may behave the same way as it did when it gained sufficient evidence.
The European Commission (EC) stated in April last year that it decided to pre-install the Google Chrome app on the smartphone based on the dominance of the Android market in the mobile OS market, and set up a search app. In competition with Android The act of forbidding to sell the smartphone with the OS installed, the smartphone maker with the pre-installed Google Search, and the act of financially supporting the mobile carrier, which are in violation of the EU competition law. It has been revealed that commission may issue an order to suspend the payment of penalties.
Google may be fined KRW 8 trillion, or 10 % of its annual global sales (about USD 7.5 billion, or about KRW 82 trillion), for each of the alleged issues.
According to the foreign news agencies, the EC`s conclusion on the allegations of Google`s alleged superiority of its price comparison shopping service over competitive services is predicted to come in the first half of the year at earliest.
However, it is highly possible that Google may appeal against Google`s refusal to give preference to its services. In the case of appeal, the EU`s Google survey may take many years to come to a conclusion.
On the other hand, officials at the Korea Federation of Knowledge Industry Surveys stated, ‘We are monitoring the foreign authorities` actions and cannot disclose the progress of the investigation as it is currently under progress. "Although, there is no organization dedicated to responding to Google, we are in contact with Google Korea and Google headquarters.
By Kim Soo Yeon newsnews@
[ copyright ⓒ The Digitaltimes ]
According to industry sources, on April 19, although the FTC entered re-investigation on Google, which was in danger of being fined for KRW trillion in Europe due to unfair practices such as ‘app pre-loading’, the re-investigation is now proceeded in simple monitoring level.
Industry experts point out that stronger investigation shall take place by special investigation team.
Korean portal companies such as Naver and Daum reported that Google had been forced to install Android OS (OS) to smartphone makers so that users can not delete Google app from smartphone as a violation of the Fair Trade Act in 2011.
However, the FTC concluded in 2013 that there was no objection. Last year, Chung Jae Chan, chairperson of FTC revealed to re-investigate Google as the contents of the unfair mobile app distribution agreement (MADA), which is a contract between smartphone maker and Google, was disclosed at that time.
MADA specifies that Google should be set as the default search engine on phones and specify the location of the Google app, and provide the Android OS free of charge on the condition that the Google essential app is loaded at once. Samsung Electronics and other smartphone makers signed an agreement that they are not able to develop a new OS by using Android algorithm.
Currently, the FTC is reviewing related cases through the Knowledge Industry Monitoring Division, which has newly been established in December last year. The Ministry of Knowledge Industry Surveillance department has explained that seven people are employed to monitor the domestic and overseas situation.
However, it is not possible to investigate on the preload apps installed on Google`s line, only by the knowledge industry monitoring department as the department takes care of the ICT patents and intellectual property disputes related to the overall investigation. That`s why criticism has been raised toward the FTC as the Commission seems to just pretend to investigate Google but in reality it is not working on investigation.
The FTC has been hesitant to investigate the fact that it is due to the possible burden of enormous lawsuit costs in the case of a domestic company does not cooperate with the head office of a multinational corporation.
It is also observed that the FTC`s re-examination of Google is likely to be delayed depending on the progress of the EU-Google dispute progress.
As the European Commission (EC) ruling that Microsoft violated the antitrust laws by interrupting its Web browser in the past, the FTC may behave the same way as it did when it gained sufficient evidence.
The European Commission (EC) stated in April last year that it decided to pre-install the Google Chrome app on the smartphone based on the dominance of the Android market in the mobile OS market, and set up a search app. In competition with Android The act of forbidding to sell the smartphone with the OS installed, the smartphone maker with the pre-installed Google Search, and the act of financially supporting the mobile carrier, which are in violation of the EU competition law. It has been revealed that commission may issue an order to suspend the payment of penalties.
Google may be fined KRW 8 trillion, or 10 % of its annual global sales (about USD 7.5 billion, or about KRW 82 trillion), for each of the alleged issues.
According to the foreign news agencies, the EC`s conclusion on the allegations of Google`s alleged superiority of its price comparison shopping service over competitive services is predicted to come in the first half of the year at earliest.
However, it is highly possible that Google may appeal against Google`s refusal to give preference to its services. In the case of appeal, the EU`s Google survey may take many years to come to a conclusion.
On the other hand, officials at the Korea Federation of Knowledge Industry Surveys stated, ‘We are monitoring the foreign authorities` actions and cannot disclose the progress of the investigation as it is currently under progress. "Although, there is no organization dedicated to responding to Google, we are in contact with Google Korea and Google headquarters.
By Kim Soo Yeon newsnews@