FTC opts to give Google a chance to resolve unfair YouTube bundling

Home > Business > Industry

FTC opts to give Google a chance to resolve unfair YouTube bundling

Published: 22 May. 2025, 18:36

Audio report: written by reporters, read by AI

Kim Moon-sik, the director of the Fair Trade Commission's market surveillance department, speaks during a press conference at the government complex in Sejong on May 22, explaining that the agency will move forward with a consent decree instead of imposing sanctions on Google over allegations of “unfairly bundling YouTube Music” with its video services. [YONHAP]

When Koreans subscribe to YouTube Premium to get rid of ads, they are automatically subscribed to YouTube Music, whether they like it or not. But that may soon change as Korea's Fair Trade Commission (FTC) announced Thursday that it will seek a voluntary resolution from Google over allegations that the company unfairly bundled its music streaming service with its ad-free offering for the video platform.

Instead of imposing sanctions, the FTC has opted to begin proceedings for a consent decree and halt its investigation into Google's suspected violation of Korea’s Monopoly Regulation and Fair Trade Act. A consent decree allows a company accused of violating the law to propose its own remedial measures, which, if deemed appropriate following public consultation, lead to a settlement without confirming a legal violation.

In Korea, Google currently only offers two paid subscription options: YouTube Premium, allowing ad-free access to videos and its music streaming service, for 14,900 won ($10) per month, and YouTube Music Premium, offering access to music only at a cost of 11,900 won per month. There is no subscription that allows only access to ad-free videos.

This raised concerns that the company was forcing users to purchase both services together. The FTC has also concluded that “consumers were denied a choice and other players in the music streaming market were unfairly hindered.”

In response to the decree, Google proposed launching a standalone YouTube video plan to expand consumer choice. The company already offers such plans, called “YouTube Premium Lite,” in nine countries, including the United States, Germany and Mexico. Google also pledged to invest 30 billion won to enhance consumer welfare and support the domestic music industry and creators.

A silhouette of a mobile user is seen next to a screen projection of Youtube logo in this picture illustration taken March 28, 2018. [REUTERS/YONHAP]

However, if the FTC finds Google’s proposal inadequate, it can resume its investigation. The price, rollout date and service quality of the standalone YouTube video subscription are expected to factor into the FTC’s final decision.

“We are continuing to cooperate in good faith with the FTC on the consent decree,” a Google spokesperson said.

However, some critics argue that the decision may have been influenced by concerns over trade friction with the United States. The Donald Trump administration views Korean regulatory actions against U.S. tech giants like Google as trade barriers and has been pressuring Korea with the threat of tariffs.

However, Kim Moon-sik, the director of the FTC’s market surveillance department, dismissed the claims, saying that “the decision was made based on law and principle, regardless of trade issues.”

“This move could leave a positive impression on the U.S. government as Seoul and Washington conduct trade negotiations,” said Heo Yoon, a professor at Sogang University’s Graduate School of International Studies. Still, he advised that “the timing and direction of the final decision on Google’s consent decree may need to align with how those negotiations unfold.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM MIN-JOONG [[email protected]]