[Alpha Biz= Kim Jisun] Seoul prosecutors have indicted Kakao Mobility and three of its executives, including CEO Ryu Geung-seon, over allegations of call blocking, while dismissing charges related to preferential call allocation and accounting irregularities.

The Seoul Southern District Prosecutors’ Office, Financial Investigation Division 2, filed the indictment on January 26 under the Monopoly Regulation and Fair Trade Act. The investigation found that from February 2021 to December 2023, Kakao Mobility allegedly abused its dominant position in the taxi general-call app market by demanding business secrets and fees from four competing small franchise operators. Drivers affiliated with non-compliant franchises were reportedly blocked from using the Kakao Taxi app, allegedly interfering with their business operations.

Prosecutors noted that Kakao Mobility controlled 95% of the medium-sized taxi app general-call market, highlighting its market dominance in the alleged misconduct.

Kakao Mobility stated it intends to cooperate fully with the investigation, asserting that its platform partnership agreements were legitimate efforts to maintain service quality and prevent unfair advantages for competitors, without any intent to restrict competition.

The company also noted that separate cases— the Fair Trade Commission’s 2023 “preferential call allocation” complaint and the Financial Services Commission’s accounting standard violation notification—were both dismissed. Prosecutors concluded that the evidence did not support these allegations.

 

 

 

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