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Photo = Fair Trade Commission |
[Alpha Biz= Reporter Kim Sangjin] The Korea Fair Trade Commission (KFTC) has initiated sanctions against Kakao Mobility over allegations of collecting excessive fees from taxi operators.
On October 10, industry sources reported that the KFTC sent a review report containing sanction recommendations to Kakao Mobility regarding potential violations of the Franchise Business Act.
Kakao Mobility is accused of imposing fees during contracts with franchise taxi drivers, charging for “cruising operations” (where drivers pick up passengers while driving around) and also collecting fees for calls received through other apps. These charges have been categorized as “platform usage fees.”
The KFTC believes that Kakao Mobility's standards and methods for collecting these fees constitute unfair trading practices and has begun the sanction process.
Previously, the KFTC also issued a similar review report to DGT Mobility, Kakao Mobility's franchise headquarters in the Daegu and Gyeongbuk regions, regarding the same allegations.
The KFTC plans to convene a review meeting soon to decide on the appropriateness and severity of the sanctions.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
