Google Unbundles YouTube Premium in Korea After Antitrust Concerns

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Google is set to introduce a new YouTube subscription plan in South Korea, which offers only ad-free video services without the inclusion of YouTube Music. This move was made in response to concerns raised by the Korea Fair Trade Commission (KFTC) about Google’s bundled subscription plans, which were considered an unfair trade practice. The decision reflects that Google is changing its strategy in the Korean market to focus on giving customers more freedom to choose and avoiding issues with regulatory penalties.

 Google introduced YouTube Premium plan in 2018, offering ad-free video streaming bundled with YouTube Music. Because YouTube Premium offered YouTube Music at no additional cost, YouTube Music rapidly expanded its user base. Eventually, it achieved the highest number of users among music streaming platforms in August 2024. While Google has offered YouTube Music Premium, a stand-alone music subscription that does not include the benefits of YouTube Premium, it has not provided a product offering ad-free video services without the music streaming service. In February 2023, the KFTC started investigating Google over concerns that its YouTube Premium plan limited consumer choice and restricted fair competition in Korea’s music streaming market. 

 After over two years of investigation, the KFTC concluded that this lack of separation attracted users from other domestic music streaming platforms by introducing consumers to YouTube Music as a bonus, potentially harming domestic music platforms such as Melon, Genie, and Flo. In response, Google submitted a consent decree application to the KFTC, a legal process through which companies can propose actions to fix antitrust concerns. As part of this process, Google proposed launching YouTube Premium Lite in Korea, a subscription option that includes ad-free video streaming but excludes access to YouTube Music. The exact pricing of the service in Korea has not been confirmed, but it is expected to be more affordable than the current YouTube Premium plan. YouTube Premium Lite is already available in nine countries such as the United States, Thailand, and Germany, priced at $7.99 per month, while YouTube Premium currently costs $13.99.

 Additionally, Google has announced plans to establish a $22 million fund to support the Korean music industry and artists. This is expected to include programs to support creators and collaborations with domestic music platforms, contributing to the sustainability of Korea’s music streaming ecosystem. The KFTC accepted the proposal of these remedies in order to prioritize the prompt action to protect local platforms from further harm. The company would not face any fines or further sanctions due to these measures. While the KFTC accepted Google’s proposal, some in the industry have raised concerns. Critics argue that the YouTube Premium Lite tier could even strengthen YouTube’s dominant market position. Although the investment is considered as a meaningful support, questions remain about the long-term impact on Korea’s streaming ecosystem.

 The launch of YouTube Premium Lite shows how Google is trying to resolve regulatory concerns while giving Korean users more options of services to choose from. The decision could help boost competition in the domestic music streaming market and provide better support for domestic content creators. Ultimately, it shows how global platforms are required to adjust their strategies to meet both local regulatory and consumer demands.