Google slapped for violating fair trade pact

Google is in hot water with the Korea Fair Trade Commission (KFTC) for allegedly violating part of its business agreement with the watchdog.

The KFTC decided to impose corrective measures on Google after a domestic Korean internet company complained to the Commission.

Google received an injunction order from the KFTC after the unnamed Korean web company claimed Google and AdSense unfairly terminated its business agreement over allegations of click fraud.

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The KFTC claims Google carried out violations including terminating the agreement between AdSense and the Korean company, failing to ensure payments and not providing advertisers with a right to appeal on the methods used to assess payments.

A spokesperson for Google Korea said it is carefully reviewing the demands with a team of Korean lawyers to determine the validity of the injunction order.

As claims of fraudulent clicks surfaced, many site administrators from Korea piped up to complain about how they are treated by Google.

Ciewoo Lee, who runs the Korean internet vacation travel agency TourStar, said many advertisers complain about the actions of Google AdSense and are unhappy with Google's one-sided terminations because no clear data is provided by the search giant to back-up its actions.

A spokesperson for the KFTC said this decision applies to any company - including overseas businesses - that conducts business in Korea. Such companies must practice under the fair trade laws and any violations of agreements will be dealt with with the strictest measures, the spokesperson added.

Yoonjung Yoo writes for ZDNet Korea