Fair Trade Commission Chairman: "Investigation into YouTube Music Bundling Allegations to Conclude Next Month"

The Fair Trade Commission (FTC) will complete its investigation next month into Google's practice of bundling YouTube Music with YouTube Premium subscriptions. Investigations into violations of the Act on Labeling and Advertising by Chinese e-commerce companies Alibaba and Temu are also expected to be completed soon.

According to the FTC on the 23rd, Han Ki-jung, the chairman of the commission, stated at a press briefing held on the 21st, "We are well aware of the concerns from the industry and consumers regarding Google's practice of bundling YouTube Music with YouTube Premium."

He added, "We are closely examining the issue to prove legal violations, including analyzing the anti-competitive effects in the domestic music streaming market. We plan to conclude the investigation in July, and if any legal violations are confirmed, we will take strict measures."

Chairman Han also explained, "We plan to soon present findings confirming violations of the Electronic Commerce Act, such as Alibaba and Temu's failure to report as telecommunication sellers. The investigation into alleged violations of the Act on Labeling and Advertising is also expected to be completed by July."

Alibaba is suspected of misleading consumers by displaying prices that were never actually sold as the regular price and advertising them as discounted. Temu is under investigation for advertising that coupons are available only during certain periods, while in reality, coupons are provided continuously upon application installation.

Regarding the recent sanctions on Coupang's preferential treatment of its own products, Chairman Han emphasized, "This is to establish fair trade order in platform markets, including online shopping malls, and to promote innovative competition. We have enforced the law based on legal principles without distinction between domestic and foreign companies."

He continued, "We plan to notify the respondents with a resolution containing specific corrective action plans to ensure that the illegality of the acts is sufficiently resolved," adding, "Disputes with the involved respondents will be handled by the courts."

Regarding the investigation into the Korean Medical Association's alleged 'collective work stoppage coercion,' he explained, "We received a report suggesting possible violations of the prohibition on business association misconduct, and the investigation is ongoing. We are examining whether there was actual coercion to stop work."

Chairman Han also mentioned potential competition issues arising from the rapid development of artificial intelligence (AI), stating, "We plan to publish a report by the end of the year reflecting opinions from internal and external experts as well as global discussions."