As the U.S. tech giant faces increased scrutiny from regulators and politicians, Alphabet Inc’s (GOOGL.O) Google said on Wednesday that its presence in South Korea equates to nearly 12 trillion won ($10.16 billion) in economic benefits for its users.
Google’s announcement came just one day after the South Korean antitrust agency fined the company 207 billion won for blocking customized versions of its Android operating system, the company’s second setback in less than a month in the country. This could be the ninth-biggest fine ever imposed by the Korea Fair Trade Commission.
According to a report from consulting firm AlphaBeta, Google provides 5.1 trillion won in benefits to South Koreans each year through its Play Store, 4.2 trillion won through its search engine service, and 2.5 trillion won through its productivity apps, including Google Docs, during an online event. Google added that it also annually provides 10.5 trillion won in economic benefits for South Korean companies. Google did not provide how such assessments were made.
YouTube CEO Susan Wojcicki said YouTube contributed more than 1.5 trillion won to South Korea’s gross domestic product (GDP) in 2020 and created more than 86,000 full-time jobs.“We will continue to do our best to support our partners to grow and advance into the world and to positively contribute to the South Korean economy,” Google Korea’s Country Director Kim Kyoung-hoon said during the event.
Earlier, in late August, parliament passed an amendment to South Korea’s Telecommunications Business Act – popularly dubbed the “anti-Google law” to ban major app store operators such as Google from forcing software developers to use their payment systems and effectively stopping developers from charging a commission on in-app purchases.
