February 27, 2007 6:07 AM PST

Google trading fairly in Korea?

Google is in hot water with the Korea Fair Trade Commission for allegedly violating part of its business agreement with the government branch.

The KFTC decided to impose an injunction on Google after a Korean Internet company claimed that the U.S. search giant and its AdSense advertising service unfairly terminated an ad contract over allegations of click fraud.

According to the KFTC, Google's business agreement violations include 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 Google Korea representative said the company is carefully reviewing the demands with a team of Korean lawyers to determine the validity of the injunction order.

"As Google considers Korea's importance, the decision from the Commission will be dealt accordingly, as soon as possible," the Google representative said.

As claims of click fraud 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 AdSense and are unhappy with Google's one-sided terminations. Lee says no clear data is provided by the search giant to back up its actions.

A KFTC representative said any company that conducts business in Korea must practice under the country's fair-trade laws.

"Any unfair provisions in agreements will be enforced with strictest measure to prevent disservice," the KFTC said.

Yoonjung Yoo of ZDNet Korea reported from Seoul, South Korea.

See more CNET content tagged:
Korea, Google AdSense, click fraud, injunction, Korean company

 

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