5 streaming services fined for frustrating subscription cancelations

Industry

5 streaming services fined for frustrating subscription cancelations

Published: 13 Feb. 2022, 15:59

Korea's antitrust regulator is fining Google, Netflix and three other video streaming services a combined 19.5 million won (US$16,300) for unfair business activity related to paid subscriptions.

Five over-the-top (OTT) media service providers — Google, Netflix, KT, LG Uplus and Content Wavve — hampered paid subscriber efforts to end their memberships, according to the Fair Trade Commission (FTC).

They provided falsified information or did not allow subscribers to cancel their membership online in a bid to make it difficult for customers to terminate the contract, according to the FTC.

Along with the fine, the regulator ordered them to correct their business practice.

OTT services have gained popularity here as more than 34 percent of Koreans were paid subscribers to such video streaming services last year, according to the country's media regulator.

Google's YouTube was the most popular OTT service in Korea, with a usage rate of 65.5 percent, followed by Netflix at 24 percent. Yonhap