Uber-T Map venture approved by the FTC
The Korean anti-trust authority green lit a joint venture between Uber and T Map Mobility, an SK Telecom spinoff.
The Fair Trade Commission (FTC) on Wednesday said it saw no harm to the call-service mobility market caused by the joint venture while adding that the newly formed company will contribute to the market by competing with industry leader Kakao T.
The FTC said it informed the companies about its decision to approve the joint venture on Jan. 28.
On Oct. 22, Uber requested the approval of the joint venture, in which it will own 51 percent. T Map Mobility will own the remaining 49 percent.
T Map Mobility, which was spun off from SK Telecom in December, will provide the service, including the mobility app, in connecting customers with Uber taxi.
The T Map navigation system is the No. 1 navigation system operator in Korea, with over 18.5 million people subscribing.
When it comes to taxi hailing, Kakao T dominates the market with an estimated 80 and 90 percent of the market.
In a statement, the FTC said the approval of the joint company will stimulate competition in new industries.
BY LEE HO-JEONG [email@example.com]