Seoul— Google may introduce a lower-cost version of YouTube Premium in South Korea without its music streaming service, as part of an effort to address antitrust concerns raised by the country’s Fair Trade Commission (FTC).
The proposed change is part of ongoing negotiations between Google and the FTC, which has been investigating the tech giant for allegedly violating fair trade laws by bundling YouTube Music with YouTube Premium, thereby limiting consumer choice.
In July 2023, the FTC issued a report—equivalent to a formal complaint—accusing Google Korea of abusing its market dominance by forcing users to pay for both services, even if they only wanted ad-free video streaming, according to Yonhap News Agency.
To avoid a lengthy legal battle, Google has submitted a corrective action plan under the FTC’s “consent decision” framework. This process allows regulators to suspend an investigation if the company voluntarily proposes effective remedies to resolve the issue.
“The FTC will review the validity and appropriateness of Google’s proposed corrective actions and will draw up a final consent decision plan,” the agency said Thursday. No timeline was given for the final decision.
Currently, YouTube Premium in South Korea is priced at 14,900 won (approximately $10.79) per month, while YouTube Music is also available as a standalone service for 11,990 won ($8.38).
The move comes as YouTube expands its Premium Lite pilot program in the United States, which offers ad-free video streaming without music for $7.99, compared to the full $13.99 monthly cost of YouTube Premium.
The South Korean investigation follows accusations that Google bundled services in a way that limited fair competition and gave the company an unfair advantage in the digital content and streaming markets.
The FTC has conducted on-site inspections and continues to assess whether Google’s practices amounted to market abuse. (Source: IANS)
