Google Faces Scrutiny in South Korea Over YouTube Premium Bundling Practice
South Korea’s Fair Trade Commission (KFTC) has announced it will initiate a "consent decision" procedure regarding Google’s practice of bundling YouTube Music with its subscription-based service, YouTube Premium. This decision comes after years of investigation that began in February 2023, focusing on whether the inclusion of music streaming in YouTube Premium constituted an abuse of market dominance and a restriction of consumer choice.
In 2018, Google launched YouTube Premium, a paid service that allows users to watch videos without ads. As part of the subscription, Google also included access to its music streaming service, YouTube Music. This bundling strategy quickly propelled YouTube Music to the top of Korea’s music streaming market. Domestic players like Melon and Genie Music had hoped that the antitrust probe would rein in Google's influence, but more than two years later, the KFTC has opted for a lighter regulatory path.
The consent decision procedure is a mechanism under South Korean antitrust law that allows companies under investigation to voluntarily propose corrective actions. If the KFTC deems these actions reasonable, the case can be closed without fines or formal sanctions.
Critics argue that this decision reflects the KFTC’s hesitancy to confront U.S. tech giants like Google and Microsoft due to potential trade tensions with Washington. Members of Korea’s domestic music industry have gone as far as to accuse the KFTC of giving Google a "free pass" while the platform continues to dominate the local streaming market.
The numbers support these concerns. Monthly active users of YouTube Music in Korea have more than doubled since 2021, rising from under 4 million to nearly 9.8 million. In contrast, local platforms have seen sharp declines: Melon has lost 880,000 users, Genie Music 1.2 million, and Flo around 600,000.
Live Nation and the Ticketmaster Controversy in the U.S.
The developments in Korea come amid a broader global reckoning with tech monopolies. In the U.S., the Department of Justice filed a landmark antitrust lawsuit in 2024 against Live Nation Entertainment. The company, which controls over 80% of the ticketing market following its 2010 acquisition of Ticketmaster, is accused of abusing its dominance to stifle competition.
Live Nation allegedly restricted independent artists from using alternative venues and prevented entry to fans who purchased tickets through non-Ticketmaster channels. Despite prior conditions set by U.S. regulators to prevent abuse of market position, Live Nation's practices appear to have contributed to the acquisition or demise of remaining competitors.
The DOJ's lawsuit seeks to break up Live Nation and Ticketmaster, and in March 2025, the Southern District Court of New York declined to dismiss the case, signaling that the government’s claims hold substantial merit. Many are calling this the most significant antitrust suit since the Microsoft Internet Explorer case of the late 1990s, which nearly led to the company being split in two.
A Tale of Two Approaches
While U.S. regulators aggressively pursue monopolistic behavior, Korea’s antitrust enforcement often stops short of formal sanctions. Regulatory agencies here have a tendency to resolve cases through administrative compromise rather than judicial resolution. This latest decision regarding Google only adds to the perception that Korean authorities remain reluctant to challenge the growing influence of global tech conglomerates in local markets.
As the digital economy continues to reshape global competition, South Korea may eventually be forced to reassess its stance on regulatory enforcement—especially when it comes to defending local industries from foreign tech giants.
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