Asian Tech Press (SEP 15) -- South Korea's antitrust regulator has fined Google 207 billion won (about US$177 mln) for allegedly abusing its dominant position in its Android operating system to crowd out competitors.

The Korea Fair Trade Commission (KFTC) said Google's contractual terms with device makers amounted to abuse its dominant market position and restricted competition in the mobile operating system market.

The Anti-Fragmentation Agreement (AFA) between Google and phone makers such as Samsung Electronics and LG Electronics prohibits manufacturers from developing or using customized " Android forks" operating systems, which helps Google consolidate its dominant position in the mobile operating system market.

In response, Google said it intends to appeal the decision of KFTC.

The KFTC chief said that by activating competitive pressure, they expect to see more innovations emerge, including but not limited to smartphones, but also smartwatches, smart TVs and more.

The South Korean authorities are currently conducting three other investigations against Google regarding the Play Store, inbound purchases, and advertising services.

The ruling prohibits Google from forcing device makers to sign AFA contracts, allowing manufacturers to adopt the modified Android operating system on their devices.

The fine comes as an amendment to South Korea's Telecommunications Business Act, widely known as the "anti-Google law," take effect. The act was passed in late August and prohibits app store operators such as Google from requiring software developers to use their payment systems. South Korea is the first country in the world to ban Google and Apple from forcing developers to use their payment systems.