YouTube, Netflix under scrutiny by KCC for possible violations after price hikes

The Korea Communications Commission (KCC) is looking into a string of price bumps from global streaming platforms, such as YouTube and Netflix, to determine whether or not their actions go against the Telecommunications Business Act.

The Korea Communications Commission (KCC) is looking into a string of price bumps from global streaming platforms, such as YouTube and Netflix, to determine whether or not their actions go against the Telecommunications Business Act.

YouTube recently raised its monthly premium package price by 42.6 percent to 14,900 won ($12). Netflix also completely scrapped its cheapest, ad-free membership with a 9,500 won price tag, essentially raising its most basic monthly handle by 42.6 percent to 13,500 won.

Under Article 50 of the current Telecommunications Act, no telecommunications business operator may engage in what it defines as “prohibited” acts that “undermine or are likely to undermine fair competition or users’ interests, or allow other telecommunications business operators or third parties to engage in such conduct,” including the operators’ failing to explain or notify users about important matters, such as service charges, contract terms and conditions, and discounts of service charges. False explanations and notifications with regard to telecommunication services are also prohibited.

If the KCC determines that the price hikes do indeed violate the act, it may suspend the action within the platform or impose a maximum fine of 3 percent of the revenue generated from the action.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]