KCC Inspects Forced Subscription Practices for Bundled Products by 3 Major IPTV Providers

The Korea Communications Commission (KCC) announced on the 27th that it will conduct an inspection throughout May to check for any violations of prohibited acts, such as IPTV providers refusing standalone IPTV subscription applications or forcing bundled product subscriptions, even though viewers can apply for IPTV without subscribing to high-speed internet.

Until now, the KCC has mainly conducted post-investigations of prohibited acts focusing on cases of harm caused by unfair competition among broadcasters, IPTV providers, and other operators, or acts that may harm viewer interests. To provide more effective and practical user protection, the KCC has introduced a 'Pre-Notification System for Inspections of Prohibited Acts.'

By pre-announcing inspection plans for vulnerable cases of prohibited acts, the KCC aims to raise awareness among operators and provide an opportunity for the public to prevent harm and enhance their awareness of rights.

The inspection targets the three IPTV providers: KT, SK Broadband, and LG Uplus. The inspection will focus on whether operators have forced bundled product subscriptions or restricted standalone IPTV subscriptions during the viewer’s IPTV subscription process, whether viewers are properly guided to select the products they want, and whether standalone products are introduced during sales.

According to the '2022 Media Usage Survey' announced by the KCC last year, while most people primarily use TV and smartphones, the proportion of people who recognize the internet (wired, desktop/laptop) as an essential medium is very low. Nevertheless, the rate of IPTV fees bundled with internet communication fees was found to be 100%, prompting the KCC to plan this inspection. Since IPTV service can be used standalone without bundling with internet, the KCC judged it necessary to examine whether viewers lack awareness of this and whether there are factors restricting viewers’ product choices, thus proceeding with the inspection under the pre-notification system.

The KCC stated that since the inspection will be conducted after prior notification, it hopes operators will take this opportunity to conduct internal self-inspections and actively strive to protect viewer interests.