The encyclopedia · Legal & Compliance · Legal decision · 2024
Kakao Mobility blocked rival taxi calls; Korea fined it ₩15.1 billion
Korea's FTC fined Kakao Mobility for blocking rival taxi apps' calls unless they signed data-sharing deals — a fine later cut from ₩72.4B to ₩15.1B.
Kakao Mobility · 2024-10-02
What happened
Kakao Mobility runs Kakao T, Korea's dominant taxi-hailing app. From March 2019 it operated Kakao T Blue, its own franchise taxi service, and demanded that four rival franchise taxi operators — UT, Tada, Banban and Macaron Taxi — either pay fees for their affiliated drivers to use Kakao T general calls or sign partnership agreements that let Kakao collect competitors' trade secrets, including driver and taxi-operation data. Operators that refused had their drivers' calls to Kakao T blocked, which pushed UT and Tada drivers into franchise terminations and made recruiting new drivers hard.
On 2 October 2024 the Korea Fair Trade Commission announced a provisional fine of ₩72.4 billion for abuse of market dominance and abuse of a superior bargaining position, alongside a corrective order and a referral to the prosecution. Kakao T held a 96% share of the general-call taxi app market as of 2022, and Kakao Mobility's share of the franchise taxi market rose from 51% to 79% as the blocking cut off competitors.
On 17 December 2024 the FTC finalized the fine at ₩15.1 billion. The reduction followed a ruling by the Securities and Futures Commission that Kakao had inflated its sales by booking franchise fees and business-partnership fees in full as revenue — the gross method — rather than netting them, which the SFC called 'serious negligence'. The corrective order and the prosecution referral were both maintained.
Why it happened
- Kakao Mobility used its gatekeeper position over taxi-call routing to force rivals into handing over driver and operation data — running a toll booth on the market it was also competing in.
- The gains were real and measurable: franchise share climbed from 51% to 79% while UT and Tada lost drivers, so the conduct worked until the regulator priced it.
- Inflating revenue on the books gave the regulator a cleaner lever — the SFC's gross-method ruling cut the base for the fine, but it also confirmed the underlying conduct.
The lesson
Kakao Mobility cut rival taxi apps' calls unless they signed data agreements, then ran its own fine down by inflating revenue — and still ended up fined and referred to prosecutors.
Sources
- Infomax (English) — Korea FTC to fine Kakao Mobility 72.4 bln won for unfair business practices (provisional fine, corrective order, prosecution referral; 96% general-call share 2022; Kakao T Blue franchise launched March 2019; UT/Tada calls blocked; franchise share 51%→79%)
- Asia Business Daily (English) — KFTC finalizes Kakao Mobility fine at 15.1 bln won (final fine 15.1B won on Dec 17 2024, down from provisional 72.4B; SFC ruled gross method 'serious negligence', net method correct; corrective order and prosecution referral maintained)
spotted an error? The club wants to know.
More like this
SK Telecom fined a record 134.8 billion won for SIM data leak affecting 23 million users
Korea fined Qualcomm ₩1.03 trillion — a record that survived to the Supreme Court
SK Innovation destroyed evidence in a battery suit, paid $1.8B to dodge an import ban
Somewhere, someone solved the problem this company failed at. 2nd Opinion →

Comments · 0
Sign in to join the comments.