Fair Trade Commission Begins Sanctions on 'Call Steering'... Kakao Mobility "Will Actively Explain"

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[Asia Economy Reporter Seungjin Lee] Kakao Mobility has stated that it will actively clarify the excessive misunderstandings regarding its dispatch system in response to the Fair Trade Commission's initiation of sanctions over allegations of "call (passenger request) favoritism."

On the 25th, the Fair Trade Commission sent Kakao Mobility a review report (equivalent to a prosecutor's indictment) containing opinions on sanctions for preferential treatment of its own company. The investigation began following reports from taxi organizations in 2020 suspecting that Kakao Mobility was favoring calls to Kakao-affiliated taxis (Kakao T Blue).

The taxi organizations claimed that when passengers request taxis through the Kakao T app, instead of dispatching nearby regular taxis, Kakao-affiliated taxis located farther away were dispatched first.

The Fair Trade Commission conducted on-site investigations at the headquarters to determine whether Kakao Mobility adjusted its algorithm to favor dispatching calls to affiliated taxis over non-affiliated ones. As a result, it is known that the commission tentatively concluded that Kakao Mobility, the leading company in the platform mobility market, abused its dominant market position to favor its own services, and that sanctions are necessary.

In response, Kakao Mobility expressed regret. A Kakao Mobility official stated, "We have faithfully explained that the dispatch system was designed to enhance the convenience of both consumers and drivers, but we regret that this point was not accepted."

They added, "To ensure that the consumer benefit enhancement effect is fully considered, we will actively clarify the excessive misunderstandings about the dispatch system during the submission of written opinions and the plenary meeting process," and explained, "We expect a reasonable judgment considering consumer welfare regarding the platform."

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