South Korea nears completion of 16-month antitrust investigation into YouTube

South Korea’s antitrust regulator will conclude its sweeping, 16-month investigation into YouTube next month, focusing on possible rule violations related to the music streaming service’s bundling with the company’s ad-free premium subscription program.

During a press conference on Friday, Han Ki-jeong, chairman of the Korea Fair Trade Commission (KFTC), acknowledged the industry’s and consumers’ concerns about YouTube’s bundling practices. “The antitrust authority is well aware that the industry and consumers have raised concerns about the bundling of YouTube Music with the YouTube Premium subscription,” explained Han.

The KFTC’s investigation is intended to determine whether the integration of YouTube’s services has unfairly hindered other music streaming companies, thereby limiting competition in the Korean market. “The KFTC will complete its investigation in July and take strict measures if YouTube is found to have violated any laws,” Han added.

The investigation began in February last year with an on-site investigation at Google Korea, specifically looking into allegations related to YouTube Music. Although the investigation has lasted over 16 months, it is still ongoing.

In addition, the KFTC is investigating whether YouTube has exploited its market dominance to secure a larger share of the local music streaming market. If YouTube violates South Korean laws, the company could face fines of up to 6 percent of its revenue.

In recent years, YouTube Music has been bundled with YouTube Premium subscriptions at no additional cost, a strategy that has significantly increased YouTube’s subscriber base in South Korea. The outcome of the KFTC’s investigation could have significant implications for YouTube’s business practices and market dynamics in the region.