South Korea Fines Kakao Mobility $54.8 Million for Anti-Competitive Practices

South Korea’s Fair Trade Commission (KFTC) has levied a hefty fine of 72.4 billion won (US$54.8 million) on Kakao Mobility, a leading ride-hailing company, for stifling competition in the market, according to Tech Asia. This move is part of the KFTC’s broader crackdown on monopolistic business practices in the country.

The regulatory body also announced plans to pursue criminal charges against the company, a decision that could lead to further legal consequences for Kakao Mobility.

Per a Tech Asia report, the investigation revealed that Kakao Mobility actively obstructed the operations of competing taxi platforms such as Banban, Macaron, UT, and Tada. The company reportedly pressured these operators to either pay fees or enter into agreements to share real-time operational data. When these companies refused, Kakao allegedly retaliated by threatening to block their drivers from using its primary ride-hailing app, Kakao T.

Kakao Mobility’s influence in South Korea’s taxi franchise market has grown significantly, with its market share climbing from 51% in 2020 to 79% in 2022. This dramatic expansion triggered concerns about potential monopolistic behavior, prompting the KFTC’s investigation.

The recent fine and looming criminal charges highlight growing regulatory scrutiny over Kakao Mobility’s business practices. South Korea’s government appears determined to maintain a competitive landscape in its rapidly evolving ride-hailing industry, ensuring fair opportunities for all players.

Source: Tech in Asia