South Korea's antitrust regulator is set to take action against Google over allegations that the tech giant has unfairly bundled its YouTube Music service with its YouTube Premium subscription program. According to the officials, Google has been accused of violating fair transaction laws by offering the YouTube Music streaming service at no additional cost to users of its ad-free YouTube Premium, raising concerns about unfair competitive practices.
The Fair Trade Commission (FTC) has been investigating these claims since February of last year, conducting an on-site probe to determine whether Google’s bundling strategy has breached fair trade regulations. This investigation scrutinizes whether Google has exploited its market dominance by offering the YouTube Music service as part of its YouTube Premium package without extra charges.
Following the extensive investigation, the FTC recently issued a review report recommending punitive measures against Google. This report will be considered before a final decision is made at an upcoming plenary meeting, as reported by Yonhap News Agency. Officials noted that the probe aims to assess if Google’s actions have stifled fair competition within the streaming service market by leveraging its dominant position.
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Some have pointed out that the bundling has helped boost the number of YouTube subscribers and, over the course, has limited consumers' choices and unfairly hindered the businesses of other music streamers.
"We are working to wrap up the investigation and other necessary procedures in July and come up with a final decision in weeks or so," an FTC official said.
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Inputs from IANS