Taxi 4 Groups File Complaint with Fair Trade Commission Alleging Kakao Call Favoritism (Comprehensive)

[Asia Economy Reporter Buaeri] It has been confirmed that taxi organizations have submitted a petition to the Fair Trade Commission requesting corrective action against 'Kakao's call (dispatch) favoritism.'

Taxi Organizations Demand Fair Trade Commission Take Corrective Measures Against 'Call Favoritism'

According to the taxi industry on the 10th, four taxi organizations (the National Taxi Labor Union Federation, the National Democratic Taxi Labor Union Federation, the National Private Taxi Transport Business Association Federation, and the National Taxi Transport Business Association) sent a petition to the Fair Trade Commission the day before, stating that "Kakao Mobility is abusing its monopolistic position and harming fair trade."

The taxi organizations raised concerns about Kakao Mobility's alleged 'call discrimination.' For example, when a passenger calls a taxi using the taxi-hailing application 'KakaoT,' calls do not go to nearby taxis but instead go to 'KakaoT Blue' taxis located farther away. KakaoT Blue is a taxi brand operated by Kakao.

The taxi organizations pointed out that the KakaoT app, which many citizens already use, is being monopolized solely to increase Kakao's profits, causing losses to other taxi drivers, which they see as problematic.

In their petition, they requested the Fair Trade Commission to determine whether the 'call favoritism' suspicion constitutes an 'act likely to impede fair trade' under Article 23 of the Fair Trade Act.

"Excessive Commission Fees for Kakao Franchise Taxis"

The taxi organizations argued in the petition that Kakao Mobility unilaterally sets excessive commission fees for franchise taxis under the KakaoT Blue brand, thereby undermining fair contracts.

In the franchise contract for KakaoT Blue, franchisees are required to pay 20% of the total fare (gross sales) as a monthly commission to the franchisor.

The taxi organizations stated, "Charging commissions on sales unrelated to the franchise business service (such as sales generated through roaming operations or other companies' call apps) is an unfair contract that abuses the monopolistic position of the franchisor to obtain unjust profits."

Additionally, Kakao Mobility has prepared a business partnership agreement separate from the five-year franchise contract, which is subject to change every three months. The taxi organizations expressed concern that commission fees could be unfairly increased during this process.

Following the petition submission, the taxi organizations are preparing to file a complaint with the Fair Trade Commission and take legal action. Lee Heon-yeong, Labor-Management Countermeasures Director of the National Taxi Labor Union Federation, stated, "We are preparing to file a complaint with the Fair Trade Commission and a report regarding violations under current laws. However, we will decide whether to proceed after hearing the Fair Trade Commission's response."

Kakao Mobility: "No Call Favoritism or Excessive Commissions... Providing Integrated Infrastructure"

In response, Kakao Mobility stated, "KakaoT assigns calls based on an AI-based dispatch system," denying the favoritism allegations by saying, "It is impossible to artificially assign calls to specific services or vehicles."

A Kakao Mobility representative explained, "We analyze big data on various variables and scenarios such as the taxi's estimated arrival time, driver acceptance rate, driving patterns, driver ratings, and real-time traffic conditions," emphasizing, "There is no artificial dispatching that favors KakaoT Blue."

Regarding franchise taxi commissions, they said, "Roaming operations are not sales generated on the KakaoT platform," but added, "KakaoT Blue does not simply pay commissions for dispatch services; it receives integrated infrastructure including brand image and driving data management."

About the three-month partnership contract period, they added, "If changes are necessary, they are made by mutual agreement; it does not mean the contract must be renewed every three months."

This content was produced with the assistance of AI translation services.