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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Google has submitted a voluntary corrective plan to the Korea Fair Trade Commission (KFTC) amid allegations of unfair bundling practices involving its ad-free video streaming service and music product, known as ‘YouTube Premium.’
On May 22, the KFTC announced that it has initiated a consent decree procedure concerning Google’s possible violation of the Monopoly Regulation and Fair Trade Act. The decision was made following a plenary meeting held on May 14.
The issue centers on Google’s practice of bundling its ad-free video service with YouTube Music under the ‘YouTube Premium’ subscription.
While YouTube Music was sold as a standalone product in South Korea, the ad-free video service was never offered separately. The KFTC found that this bundling restricted consumer choice by effectively forcing users to subscribe to YouTube Music when purchasing the ad-free video service. Moreover, the practice was deemed to unfairly hinder competition in the market.
After receiving the KFTC’s investigative report recommending sanctions, Google responded by submitting a consent decree application outlining plans for voluntary remedies and cooperative measures.
As part of the proposed remedy, Google committed to launching a standalone subscription plan for ad-free YouTube video streaming, equivalent to the ‘YouTube Premium Lite’ service already available in other countries.
Following the commencement of the consent decree process, the KFTC will draft a formal consent order and engage in negotiations with Google. The finalized consent decree will be submitted to the full commission for approval.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
