Republic of Korea: Issued ruling in FTC investigation into Kakao Mobility over manipulative algorithms use

On 14 February 2023, the Federal Trade Commission (FTC) announced that it closed its investigation into the taxi-hailing application service Kakao Mobility Co., Ltd. (Kakao) over its alleged use of manipulative algorithms to give preferential treatment to specific companies and issued a KRW 25.7 billion fine. The FTC found that Kakao manipulated its algorithm of the Kakao T app to give preferential treatment to its affiliated drivers. The algorithm was also found to give rides that are not as profitable, such as short-distance rides, to non-affiliated drivers. The practice caused the fare income of affiliated drivers to be higher than non-affiliated ones, allowing Kakao to increase the number of affiliated drivers on its app substantially by employing unfair practices.