South Korea’s Fair Trade Commission (FTC) has imposed a fine of 72.4 billion won (US$54.8 million) on Kakao Mobility, a major ride-hailing service in the country, for obstructing competition.

The FTC also announced plans to file criminal charges against Kakao Mobility for its business practices.

The regulatory action follows reports that Kakao Mobility sought to limit competing taxi operators such as Banban, Macaron, UT, and Tada from utilizing its ride service.

The FTC claims Kakao Mobility demanded these operators either pay fees or sign agreements to share their real-time operational data.

When operators declined, Kakao Mobility threatened to block their drivers from accessing its primary ride-hailing app, Kakao T.

Kakao Mobility’s market share in the taxi franchise sector rose from 51 percent in 2020 to 79 percent in 2022, raising concerns about monopolistic behavior.