Attention is focused on whether Google, facing sanctions from competition authorities for its 'YouTube Music bundling' practice, can avoid administrative penalties such as fines by expressing its intention to voluntarily correct the issue.
According to industry sources on the 15th, Google recently prepared a corrective plan regarding the suspicions of YouTube Music bundling and is currently consulting with the Korea Fair Trade Commission (KFTC) on whether to initiate the consent decree procedure.
The consent decree is a system where a business operator proposes a reasonable corrective measure such as restoration or damage relief, and if the KFTC recognizes its validity after gathering opinions from stakeholders, the case is swiftly closed without confirming illegality.
Although it does not make a judgment on illegality, it is regarded as a means to effectively remedy consumer harm and quickly restore competitive order.
Google offers 'YouTube Music Premium,' which normally costs 11,990 KRW per month, together when subscribing to the 'YouTube Premium plan' (14,900 KRW per month) that allows watching YouTube without ads. The KFTC views this practice as bundling that blocks fair market competition with other competing music service providers such as Melon, Genie Music, and Flo, and is proceeding with sanction procedures.
Initially, Google submitted an opinion letter in February to the KFTC directly refuting the illegal conditions pointed out in the KFTC's review report, but it is reported that they suddenly shifted to resolving the issue through a consent decree.
Google is reported to have expressed to the KFTC its intention to voluntarily correct the problematic part and prepare a win-win plan. It is presumed that this includes launching a separate product excluding YouTube Music from YouTube Premium and establishing a win-win fund for the domestic music streaming industry.
The KFTC plans to review the validity of the corrective measures and, if Google formally applies for the consent decree, decide whether to initiate the procedure through a plenary meeting. Once the consent decree is confirmed, the usual case processing procedures are suspended and no judgment on illegality is made.
There is speculation that risk factors related to recent trade issues may act as variables during the KFTC's consent decree review process. Former U.S. President Donald Trump previously regarded regulations on domestic platform companies as a non-tariff barrier and mentioned the possibility of retaliation.
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