Seoul, May 22 Google may launch a cheaper version of YouTube Premium without its music streaming component in South Korea in a move aimed at addressing concerns over alleged anti-competitive practices, the country's antitrust watchdog said on Thursday.
The self-proposed measure is part of negotiations between the U.S. tech giant and the Fair Trade Commission (FTC), which has been investigating Google over suspicions that it violated fair trade rules by bundling YouTube Music to its premium subscription service.
In July last year, the FTC issued a report equivalent to a formal prosecution complaint, accusing Google Korea of unfairly bundling YouTube Music with YouTube Premium, thereby restricting consumer choice and abusing its market dominance, reports Yonhap news agency.
The regulator claims Google's practice effectively forced consumers to subscribe to both services, limiting options for those who may have only wanted access to ad-free video streaming.
Rather than pursuing a prolonged legal battle, Google has submitted a corrective action plan under the FTC's procedure known as a "consent decision." The mechanism allows the FTC to suspend its investigation if the company voluntarily proposes measures that address the alleged consumer harm.
"The FTC will review the validity and appropriateness of Google's proposed corrective actions and will draw up a final consent decision plan," the FTC said Thursday, without disclosing when a final decision would be made.
In South Korea, YouTube Premium currently costs 14,900 won (US$10.79) per month, while YouTube Music is offered separately for 11,990 won ($8.38) per month.
In the United States, YouTube recently announced it is expanding its Premium Lite pilot program to local users. The Premium Lite plan costs $7.99 per month, significantly lower than the full YouTube Premium subscription at $13.99.
In July last year, the US tech giant was accused of providing the YouTube Music streaming service to users of the ad-free YouTube premium program without additional charges in violation of the fair transaction law, and the Fair Trade Commission (FTC) has carried out an on-site probe since February last year.
Officials have said the probe was focused on whether Google has abused its market dominance for implementing such a practice and that it has restricted fair competition in the industry.
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