Republic of Korea: Issued ruling in KFTC investigation into Kakao Mobility for alleged abuse of market dominance in the ride-hailing service market

On 2 October 2024, the Fair Trade Commission of Korea issued a ruling with a tentative fine of KRW 72.4 billion against Kakao Mobility for abuse of market dominance in the ride-hailing service market. The ruling highlighted that Kakao Mobility pressured four rival taxi platform operators, namely, UT, Tada, Banban, Macaron Taxi into sharing confidential business data, including ride data, in exchange for access to the general Kakao T ride-hailing service. Failure to comply led to the suspension of taxi drivers affiliated with these competitors from Kakao T’s general ride-hailing service. The ruling concluded that this exclusion tactic significantly raised Kakao’s market share, stifling competition and resulting significant loss of business to certain rivals.