The antitrust watchdog in South Korea has imposed a fine 207,4 billion won Google, about 177 million dollars, after finding that the American company abused its position in the market, preventing the entry of competing mobile operating systems (OS) in its devices.
The company did this to force manufacturers to sign an anti-fragmentation agreement, the commission said.
The companies that signed the agreement could not change the Android source code or develop their own operating system, the KFTC said.
The deals also prevented manufacturers from distributing their own software development kits, the antitrust observer said.
According to the committee, Google has been doing this since 2011, when it secured a 72% market share in the Android mobile market.
The company acted as a "private regulator", which caused the failure of mobile development projects run by companies such as Amazon and Alibaba, the KFTC said.
The US company 's restriction against manufacturers was "an unprecedented anti - competitive action" that "hindered innovation" in the field of smart OS, he added.
The KFTC began investigating Google practices in July 2016. It held three plenary sessions four months before making its decision.
Google did not comment on the case.
Earlier this month, the South Korean National Assembly approved one bill which will require Apple and Google to change the way in-app payment systems in the country operate. The new laws, which went into effect on Tuesday, prohibit companies from forcing developers to use their in-app purchasing systems.